FACTORING FOR

BUSINESS

GET YOUR FACTORING QUOTE

HOW DOES INVOICE FACTORING WORK?

The idea behind how invoice factoring works is simple. You deliver a product or provide a service and send the invoice to the factoring company to get paid right away. No more billing yourself and waiting 30, 45, or even 60 days for payment from the customer.

WHY MORE BUSINESSES CHOOSE STEELHEAD FINANCE FOR THEIR INVOICE FACTORING NEEDS

Steelhead Finance has been providing cash flow to companies for over 40 years. As a division of People’s Bank of Commerce, Steelhead Finance has the financial strength and expertise to be a valuable partner in your business growth. In addition to instant cash for your receivables, Steelhead Finance provides services to support your business. Considering a new customer? Steelhead Finance will provide you with complimentary commercial credit assessments to assist you in your strategic growth.

INVOICE FACTORING IS AN ALTERNATIVE TO LOANS FOR YOUR BUSINESS

Many businesses utilize invoice factoring instead of a standard loan. Factoring can assist businesses with limited history and marginal financial statements. Unlike a loan, factoring doesn’t add debt to the balance sheet and usually provides more immediate cash for your receivables than a bank line. Steelhead Finance won’t cap your growth or cash needs with a borrowing limit.

HOW BUSINESSES MAKE THE BEST USE OF INVOICE FACTORING

Many businesses capitalize on the use of invoice factoring for any number of reasons which include:

  • Meeting Payroll Needs
  • Hiring New Employees
  • Purchase New Supplies for Projects
  • Buying More Inventory
  • Settle Payables
  • Other Expansion Possibilities

WHAT INDUSTRIES CAN UTILIZE INVOICE FACTORING

  • Transportation
  • Staffing
  • Service
  • Manufacturing
  • Retail
  • Distribution
  • Wholesale
  • Professional Services

HOW TO QUALIFY FOR INVOICE FACTORING

When you look to get started, there are a few things that your invoice factoring company will look for to determine eligibility. Does your company have commercial receivables? Most factoring companies, including Steelhead Finance, do not purchase receivables due from consumers. Are the receivables due from credit worthy customers? While poor customer credit doesn’t necessarily disqualify the business from factoring, it may disqualify that specific customer from being eligible to be factored.

HOW MUCH DOES INVOICE FACTORING COST?

There is typically no up-front cost to factor invoices, but there is a fee applied from each invoice. A normal factor advance may range from 70% to 90% depending on industry and factoring arrangements. The fee is typically contingent upon contract term and factored volume. This fee may range from 1% to 5%.