Invoice factoring is a way to sell your invoices at a discount in exchange for a lump sum of money. The invoice factoring company then owns the invoice and receives their payment when it’s collected from your customers.

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How Does It Work?

Should you sell your goods to another business, you would send that business an invoice. Your customer has 30 days to pay off that invoice, but you need the money right now. This gap can hurt when it’s time for you to pay your employees.

While you could seek a traditional bank loan, this often involves quite a few steps and usually requires collateral. Even when you qualify, it could take months to actually get the money. Instead, turn to an invoice factoring company, such as Merchant Flow Financial. We buy your invoice for you and advance your money. Once your customer is ready to pay, the funds are forwarded to us.


Benefits of a factoring invoice:


The process to acquire the funds is quick

Easy Approval

Since a factoring invoice technically isn’t a loan, it’s easy to be approved

No Collateral

Factoring invoices generally don’t require seizable collateral, such as real estate

  • Fast cash — We close the funding gap caused by slow-paying clients.
  • Easy approval — Your credit or short operating history won’t affect the approval. We look at the value of the invoice and the trustworthiness of your client.
  • No collateral — We offer a risk-free way to get the money you need.

Should You Go With a Factoring Invoice?

You need quick cash

You can’t wait for the invoice to be paid and you need cash on the fly

The associated fees won’t be damaging

Factoring invoices come with fees, but if they’re not too unaffordable, this option will be good for you.

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Merchant Cash Advance SBA Loans Factoring Invoices Asset Based Line of Credit
Best for:

-Businesses that need a loan quickly

-Business that can pay a set daily amount or a percentage of credit or debit card sales

-Businesses that are growing

-Businesses that need a quick and manageable loan

-Businesses that need cash quickly

-Businesses that can afford the associated fees

-Businesses that are able to control cash flow

-Businesses with a good financial standing

Length of Loan -Loan is paid off when set amount is paid back to the lender. -Usually between 7 and 25 years -Paid off once original invoice is paid back -Balance is paid off as borrower spends, similar to a credit card

-Purchasing or replacing equipment

-Making a necessary repair

-Opening a new location or bringing on new employees -Paying employees, rent, utilities, etc. when company can’t wait for invoice to be received

-Managing funds

-Monitoring business cash flow and building credit


-Quick and easy to acquire


-Flexible terms and payment plans

-Streamlined process



-Easy approval

-Flexibility with spending and paying back

-Potentially low interest rates

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Invoice factoring doesn’t seem like the right fit for your business? The bankers here, at Merchant Flow Financial,  have years of experience and can help you find the right loan for your business.

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