Invoice Factoring from Express Funding allows business owners to turn B2B invoices due in 15 to 90 days into instant cash.
We pride ourselves on quick approval times, no long-term contracts, and with us there are never any hidden fees. Plus we offer credit lines from $20K to $2.5 million!
How Invoice Factoring Works
- Business-owner (the Client) sells $1,000 worth of toothbrushes to Walmart (the Debtor) which agrees to pay the Client in 30 days.
- The Factor, us, advances 85%-90% of the invoice value ($850-$900) to Client. Factor notifies Walmart to re-direct it’s payment to us at the end of 30 days.
- When 30 days pass, Walmart pays $1,000 to us.
- We then remit the remaining $100-$150 back to the client, minus $1.2% to 4.0% in fees accrued over 30 days.
Basic Factoring Terms
- Spot Factoring means the Client can pick and choose which invoice to submit for an advance.
- Recourse means the Factor can collect from the Client in case the Debtor fails to pay the invoice amount.
- Notification refers to the process where the Factor notifies the Debtor that their invoice payment will be redirected to the Factor.
Express Funding Corp is a recourse spot factor that offers both non-notification credit lines and notification credit lines. Notification credit lines typically with come a larger maximum credit line size and lower pricing, as they are fundamentally less risky than non-notification. As a spot factor, Express Funding Corp does NOT lock clients in to undesirable 1-3 year terms or require that the client factoring 100% of the invoices as many inflexible traditional factors do.