What is Invoice Factoring?
Invoice factoring, often called accounts receivable financing, allows business owners to finance outstanding invoices. We advance you cash collateralized by your unpaid invoices, giving you an excellent way to put money back into your business. With invoice factoring, you can get a fast advance of about 85% of the value of your invoices, with most of the other 15% paid to you later.
Maximum Loan Amount up to 100% of Value
Invoice factoring is a form of short-term borrowing that is extended by us to our business customers based on unpaid invoices.
Repayment when customer pays invoice
If you needed money to make payroll a week after sending out that invoice, then your accounts receivable fees don’t seem too bad after all.
Fees Starting at 8%
Invoice factoring is very similar to invoice financing with one notable difference: the invoice factoring company is purchasing your accounts receivables.
Get Your Cash as fast as 1 Day
Once you agree to collateralize some of your invoices for a loan from us, we will advance you typically 85% of the total of those invoices.
Most customers approved for Invoice Factoring had:
Who Qualifies for Invoice Factoring?
Any business with a business-to-business model can qualify for invoice factoring, as long as they currently have outstanding receivables. Cheddar don’t care as much about your revenue, profitability, or time in business. Your invoices will act as the loan’s collateral, we just want to make sure the invoices make sense for us to finance. The maximum amount you can qualify for depends on the total amount and quality of your invoices, as well as on your creditworthiness.
How to Apply for Invoice Factoring?
An invoice factoring application is a fast and simple process. Because your invoice determines the amount and terms of the financing you qualify for, the invoice itself will be the most important part of the application process.
How Does Invoice Factoring Work?
Cheddar Capital agrees to collateralize some of your invoices for a loan from our financing company, we’ll advance you typically about 85% of the total value of those invoices. We’ll charge a “factor fee” depending on how long it takes. We always calculate on a monthly basis and there is no time obligation.
What Will Invoice Factoring Cost You?
As we’ve mentioned, invoice factoring can be an expensive way to receive funding for your business. But it’s essentially the cost of having cash on hand now, instead of later.
This group was professional, timely and was a pleasure to work with. The turnaround time was fast and even with my less than perfect credit record they had me funded in a few days. Two thumbs way up!!!
Physician, New Jersey
I was very pleased with the customer service and speed of Cheddar. In this day and age it is becoming harder to find good customer service anywhere.
Funding was easy. Cheddar made it easy and fast to get the needed capital for my business.
Energy Consultant, Washington