What to Expect
Invoice Factoring is a financing solution that enables businesses to improve cash flow by selling their unpaid invoices to a third-party company, known as a factor. The factor advances a percentage of the invoice’s value—typically 70% to 90%—providing the business with quick access to working capital. Once the customer pays the invoice, the factor releases the remaining balance, minus a factoring fee. This arrangement allows businesses to bridge gaps in cash flow, meet short-term expenses, and maintain steady operations without waiting for clients to pay on traditional 30, 60, or 90-day terms.
Gather your unpaid invoices and recent financial records, then submit them along with an application to Pennington. Once reviewed and approved, receive an advance on your invoices, with Pennington handling collections and providing the remaining balance after fees when your customers pay.
Get paid quickly by selling your outstanding invoices, allowing you to access immediate working capital without waiting for clients to pay.
Unlike loans, invoice factoring is not a form of debt. You sell your receivables for cash, and there’s no repayment obligation, making it a low-risk option.
You can factor individual invoices or an entire portfolio, giving you control over how much funding you need and when.
Use the cash from factoring to cover operational costs, purchase inventory, or take on new business, helping you manage growth without disruption.
Factoring companies handle the collections process for you, freeing up your time to focus on running your business.
Invoice factoring can help improve your cash flow, which can positively impact your business’s financial health and creditworthiness.
Since the invoices themselves act as collateral, you don’t need to provide any additional assets or personal guarantees.
Invoice factoring has a faster approval process compared to traditional loans, helping you access capital quickly without the hassle.
invoice factoring is an effective solution for businesses looking to improve cash flow, reduce stress over collections, and access the funds they need to grow—without taking on debt.
It’s like getting an advance on your business’s future earnings—quick cash today, repaid with a slice of tomorrow’s sales. It’s the fast, flexible funding solution when you need cash now and can pay as you go. Think of it as a business booster shot with no waiting!
Get a financial jumpstart to fulfill big orders. A lender fronts the cash to cover supplier costs, so you can deliver without draining your pockets. Think of it as your secret weapon to say “yes” to that massive order, even if your bank account says “not yet!”
Starting or growing your business? An SBA loan could be your golden ticket, offering lower down payments and super flexible terms. At Pennington Consulting Group, we’ve got the full package to cover all your business lending needs. With over $50 million in SBA funding secured, we’re the experts who make the SBA process smooth and get you the funding you need—no sweat!
Connect with a Pennington Business Financing Specialist to find out more
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