Long Island Merchant Cash Advance

Short Term Working Capital  ​​

Solve Your Cash Flow Problems with Invoice Factoring 

Venture Business Brokers believes in the American dream and that every business deserves the opportunity to get the necessary funds needed to prosper without a long wait time and without jumping through hoops.

We also believe we have a fiduciary responsibility to you as the business owner, but we also have a responsibility to your family and the people who keep your business moving forward. With that said Venture Business Broker will never offer or push you into a financial position that is not manageable. 

Our goal is for every client to think of us as a business partner who will always have your best interest at the center of every financial decision.  

Invoice factoring is a financial transaction whereby a business sells its accounts receivable to a factoring company to free up their cash; usually to secure working capital to meet expenses, cover payroll or expand their sales. Invoice factoring lets you turn current, unpaid invoices, into cash. “Invoice financing”, “accounts receivable financing” and “receivables financing” are all interchangeable terms used for factoring. The generous terms requested by your clients means that invoices can be outstanding for 30, 60, or 90 days before payment arrives. Meanwhile, without the cash, you’re passing on opportunities to expand your business or falling behind on important expenses, like payroll. The good news is that much of this frustration can be reduced or eliminated with factoring.  

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Let’s say you own a hardware store and sell goods to another business, creating a $10,000 invoice. Your customer agrees to pay off its invoice in 30 days, but you need the cash next week to pay your employees. You’ve got a cash shortfall.

You could turn to a traditional bank for a loan, but it likely would require stellar personal credit plus collateral, a physical asset such as real estate that the lender could sell if you default. Or maybe you qualify but can’t wait several months for the loan to close.

So you turn to an invoice factoring company, and it agrees to buy your invoice for $9,700 in cash — $10,000 minus a 3% factoring fee ($300). The invoice factoring company advances 85% of the invoice (or $8,245) within a few days. The factoring company then collects the invoice when it’s due and provides the remaining balance owed to you ($1,455).

When Invoice Factoring is the Right Option 
Invoice factoring can be a great solution for businesses looking to grow at a controlled pace. With invoice factoring, you’re leveraging your business’s existing cash flow to grow, so there’s less of a risk of over-extending your business with too much credit or credit at unfavorable terms. Similarly, invoice factoring doesn’t rely on traditional credit underwriting the way a line of credit or term loan would, which makes it a great option for businesses that may have less than stellar credit scores. So if you’re a business looking to grow or manage your cash flow more effectively, invoice fzctoring may often be a smart way to do so.