Factoring invoices is a commonly misunderstood and underutilized strategy for producing a cash flow that can, in turn, grow your business.
Misconception #1: Factoring is a loan.
Factoring is not a loan, but in fact the purchase of a financial asset – your receivable. Unlike a loan, the focus of the partnership is on the cash and the quality of the receivable at hand; the credit rating or risk is not taken into account. All three parties – your company, the factoring company, and the invoiced client – are a part of the transaction.
Misconception #2: I lose control of my company with factoring.
Factoring is a tool to help you gain MORE control of your company by giving you the capital you need to grow your business, pay your bills, etc. There is no need to be tied up in the hassle of invoice payment. Crown Financial will keep you informed with up-to-the-minute reports on all of your accounts, monitor your clients’ credit, and more.
Misconception #3: The process for getting cash is slow and costly.
When working with Crown Financial, invoices are funded via wire transfer on a daily basis. You can expect to receive cash with 24 hours on most cases. Our typical payout per invoice is 85%, but this can very based on the individual client. And if you do not want to factor all invoices, you do not have to do so. The choice is completely yours!
Crown Financial has been working with companies for over 25 years to grow your business through factoring. While many claim to be experts in the field, Crown Financial can confidently say that we are experts given our wealth of knowledge, experience, and deep capital reserves available. Give us a call today and see how factoring invoices in Houston, Texas can work for you.