Invoice FactoringCurrent and future invoices can be used as collateral for short term loans lasting 30, 60, and 90 days. Texas Small Business Association™ invoice factoring is a quick, low paperwork, and risk free loan program for companies wanting immediate payment on all of their invoices. |
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Most small businesses (ie. those earning less than $10,000,000 per year in revenue) go out of business or file bankruptcy not for a lack of customers, but for a lack of cash flow. Having money in the bank to satisfy your company's bills and debt payments is the essence of cash flow management and therefore Texas Small Business Association™ provides invoice factoring to help ensure that your business has money in the bank when it's time to pay its bills.
Invoice factoring provides you an advance on your slow paying invoices so that you have consistent and predictable cash flows. It also eliminates the 30, 60, or 90 days that many customers take to pay their invoices and provides you with the monies you need to run your business. Invoice Factoring enables you to turn your slow paying invoices into immediate cash.
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Typical Companies that Factor
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Factoring is a loan process that offers (1) no risk of repayment in the event the invoiced customer defaults, (2) requires no additional collateral beyond the factored invoice, and (3) does not affect or appear on credit reports.
Factoring Process
- Deliver Goods & Services to your Customer and Issue an Invoice
- Factor the invoice with Texas SBA, Inc.
- Texas SBA, Inc. bank wires the invoiced amount to you, the vendor
- You receive the invoiced amount within 24 hours
- Texas SBA, Inc., waits for the customer to remit payment, terminating the transaction
Invoice factoring eliminates your company from having monies tied up in “Accounts Receivable,” but little cash in the bank to show for it.