Factoring is the purchase of a company’s invoices by a financial entity such as CVCredit, for the purpose of providing you liquidity by eliminating the standard 30, 60 or 90-day waiting periods for payment from your buyer.
Upon verification and approval of the invoices by the factor, your company is typically funded 80% of the total invoiced amount. When the factor collects from the buyer, we release the 20% balance to you, minus fees, credits and charges (if any apply).
Factoring can level the playing field by enabling you to approve larger orders from your buyers, while managing your company’s financial obligations and operating expenses. With this extra liquidity, you can pay your suppliers on time or even request discounts for early payments
Standard advances are 70-90% of the gross invoiced amount, subject to risk assessment and approval by the factor.