How it works?
The Factoring Process
The service initiates when a factoring company buys invoices in exchange for immediate cash, and then holds the invoices for collection until the invoices become due. As soon as a client completes a service or delivers the merchandise to their customer, the invoice is sent to the factor for funding. The factor will then provide an advance payment of 75 to 85 percent of the face value of the invoice, via wire transfer to the client’s bank account.
Once full payment is received from our clients’ customer (debtor), the factor returns the invoice payment balance minus the factoring fees.