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The Invoice Factoring Process

How does Receivables Factoring Work?

Receivables factoring (also called invoice factoring) is a cash flow solution for small to medium-sized B2B companies, allowing you to turn your unpaid client invoices into working capital when you need it most. It may sound complex, but it’s actually very simple. You sell your unpaid invoices to QC Capital Solutions as soon as you create them, we advance your business a percentage of the invoice immediately—within 24 hours for established customers. Then we collect on the invoice, and send the remainder of the balance to you (less our fee). Here's an illustration of how invoice factoring works, from start to finish:

The invoice factoring process illustrated

Who can Receivables Factoring Benefit?

Receivables factoring can benefit any company that needs working capital right away, especially those that may have difficulty securing a traditional line of credit. Companies just starting out that haven’t yet had a chance to establish good credit, or those who’re credit challenged, often find factoring a perfect solution. Because factoring isn’t a loan, but rather an advance against your accounts receivable, it can provide cash-in-hand to your business when you need it most.

QC Capital helps companies in professional and staffing services, manufacturing, and many other B2B industries to find the cash flow solutions that they need to be successful. If you’re ready to take advantage of factoring to get the cash your company needs today, then click here to get started!