Invoice financing allows companies to sell their accounts receivable. Invoice financing, is available to businesses that invoice other business or government agencies (B2B) OR (B2G). You can sell your outstanding invoices for a fee upfront. It’s very transparent and the business owner could be in control of the cost, there is no front-loaded interest, the fees are generally equally distributed on a weekly or monthly basis.
Benefits of a fixed simple interest loans
Transparent easy to calculate total payback
Interest does not compound or accrue
You are In control of total payback
No communication between funding company and your customers
Easy to calculate return on investment ( ROI )
How it works
You sell your select invoices to us at a discount, we can fund you up to 100% of your outstanding invoices within 1 business day. We simply verify your outstanding invoices that you would like to sell, and deposit the funds directly into your bank account.
We can provide invoice financing to businesses with net terms, 30, 60, 90,120 days, The fees are calculated on a weekly or monthly basis.
Invoice Financing versus Invoice factoring
Invoice financing collects payments form your business not your customers, So your customers are not aware of the arrangement as oppose to invoice factoring which your customers will be aware of your company selling your outstanding invoices.
Invoice Factoring offers greater flexibility, than invoice factoring The ability to sell your invoice for up to 24 weeks, While having flexibility to payoff anytime from 1-23 weeks With invoice financing the fee is eventually distributed on a weekly basis, not front loaded like business loans or merchant cash advances. Invoice Financing should be looked at as a hybrid product between Invoice Factoring and a Business loan.
Invoice financing cost?
Our weekly rates start at 0.375%, which is equal to 1.5% per month, the repayments can range anywhere between 4,8,12,16 or 20 weeks.
Example below is a fixed 2% per month
|Invoice Financed term||1 Month||2 Month||3 Month||4 Month||6 Month|
|Invoice Financed||$ 20,000.00||$ 20,000.00||$ 20,000.00||$ 20,000.00||$ 20,000.00|
|Monthly Fee Rate||2%||2%||2%||2%||2%|
|Total Repayment||$ 20,400.00||$ 20,800.00||$ 21,200.00||$ 21,600.00||$ 22,000.00|
|Total Fees||$ 400.00||$ 800.00||$ 1,200.00||$ 1,600.00||$ 2,000.00|
|Total Weekly Payments||4||8||12||16||24|
The cost is determined by several factors unlike invoice factoring, which only underwrites your customers ability to pay, Invoice financing programs does not get between you and your customers, so we will underwrite your ability to repay the advanced invoices, by looking at several factors. Our fees are tier priced depending on your risk score The fees could range anywhere between 1.5%-5% Per month.
Our advanced technology can look at few data points once you submit your Application
Payoff of early?
The biggest advantage that invoice financing offers is flexibility in paying off the Invoice financing program at any time. Unlike a merchant cash advance or business loan the cost or the interest is front loaded. As a result, there is no benefit in prepaying the MCA or the business loan.
Invoice financing offers many benefits.
Business that have outdating Invoices for the work or services they have performed, usually B2B Business.
|Outstanding Invoices||1 +|
|Total Outstanding Invoices||$10,000 +|
|Average Daily balance||$10,000 +|
|Average Daily balance||$1,500|
|Time in Business||6 Months +|
|Personal Credit||525 +|
How is eFundex different
|Terms||up to 24 weeks||90 days|
|Speed||1 Business day||2-5 Business days|
|Time in Business||3 Months||2 Years|
|Costs||1.5%-5% per month||3-10% per month|
|Payoff early options||Yes||No|