Invoice factoring is basically a financial transaction in which a business sells its invoice to a third party which is called a factor at a discounted price. This invoice is collateral under the agreement that the loan will be paid back. The legal ownership of the invoices still lies with the business owner.
How do Factoring Invoices work?
Factoring involves various steps which are given below.
- The first step is to submit the right invoices and good source services to larger creditworthy customers.
- The next step involves verification after which cash is credited to the company sooner than the agreed terms.
- Then the unpaid invoices are sold to the invoice factoring company.
- The company then verifies the invoices and gives up to 90% of the invoice amount.
- The amount is credited within 24 hours.
- The larger creditworthy customers pay directly to the company which charges some free and paid back to you.
What are the benefits of Factoring Loans?
Given below is the list of reasons that make factoring loans beneficial to all kinds of businesses.
- The factoring loans are approved very easily and save the time spent in going through paperwork, business plans, and financial statements.
- There is no stipulation with factoring and you can use the cash for your business as you like.
- Factoring does not create debt as long as the factored invoices are paid timely.
- It positively influences the balance sheet ratios.
Why do you need a broker?
The factoring loan brokers know how to handle this job in the right way. They wait for the accounts receivable invoice payments and offer timely cash. They know how to deal with different money lenders and the right choice for your company. They have direct dealings with various money lending sources and help in getting your loan approved easily. If you are looking for the best factoring loan broker in New York then MBS and Finance Corp is a one-stop-shop for you.
What Makes MBS and Finance Corp the best option for you?
MBS and Finance Corp is the finest factoring loan broker in New York for several reasons. Their loan-providing procedure is very simple and customer-friendly. Execution of the loan agreement is conducted digitally at your doorstep.
Once the verification step is completed, loans are funded within 24 hours. They provide a visual dashboard where you can track your transactions. Loans are funded by the screened investors only. They maintain complete privacy and do not reveal or misuse personal information about the customers.
Metro Business Solutions & Finance Corp is the best option for all your capital needs. They offer you exclusive benefits that you will not find anywhere else.