Invoice Factoring

Turn Your Unpaid Invoices into Immediate Working Capital

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What to Expect

SBA Loans at a Glance

Loan Amounts

$50,000 - $10,000,000+

Terms

Flexible contract lengths

Rate

Competitive factor rates

Payment Options

Receive up to 90% advance within 24 hours

Invoice Factoring 101

What is Invoice Factoring?

Invoice factoring is a powerful financial solution that converts your unpaid invoices into immediate cash. Unlike traditional loans, factoring is a purchase of your accounts receivable, not a debt. This means you get immediate access to working capital without adding debt to your balance sheet.

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When you factor invoices, you sell your outstanding receivables at a discount in exchange for immediate payment. This eliminates the typical 30-90 day wait for customer payments and provides reliable, predictable cash flow to your business.

How Does Invoice Factoring Work?

The process is straightforward: you submit your invoices, and we advance up to 90% of the invoice value within 24 hours. As your customers pay their invoices, you receive the remaining balance minus a small factoring fee. The invoices themselves serve as collateral, meaning no additional business assets are at risk.

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This transaction-based approach focuses on your customers' creditworthiness rather than your company's credit profile or length of time in business, making it an accessible option for growing companies and those with less-than-perfect credit.

Benefits of Getting Invoice Factoring Through Joseph Capital Network

Immediate Cash Flow

Convert your unpaid invoices into cash within 24 hours. This immediate access to working capital helps you meet payroll, take on new projects, purchase inventory, or capitalize on growth opportunities without waiting 30-90 days for customer payments.

No New Debt

Unlike traditional loans, factoring is a purchase of assets rather than a loan. This means you can improve your cash flow without adding debt to your balance sheet, maintaining your borrowing capacity for other needs.

Professional Collection Services

Our team handles collections professionally and courteously, preserving your customer relationships while ensuring timely payment. We offer both notification and non-notification programs to suit your preferences and business relationships.

Flexible Growth Financing

As your sales increase, your factoring line grows automatically. This scalability makes factoring an ideal solution for growing businesses that need reliable working capital to support expansion.

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Minimum Requirements to Qualify

Our invoice factoring programs are designed for B2B and government contractors seeking reliable cash flow solutions. While we evaluate each situation individually, these are our main criteria:

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- Monthly invoice volume of $50,000+

- B2B or government customers

- Creditworthy commercial customers

- Clean invoices free of liens

- Verifiable services or goods delivered

- No serious tax issues

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Understanding Invoice Factoring Requirements

SBA loans are a great option for small businesses. They are backed by the federal government through the Small Business Administration which makes them more affordable than other business financing options. However, they are much more difficult to acquire with strict requirements and an abundance of paperwork. Here are the initial factors you must consider before applying for an SBA loan.

Business Requirements

Your business should have qualifying B2B or government receivables and reliable customers. We work with most industries and can factor both invoices and purchase orders in many cases.

Customer Requirements

We focus primarily on your customers' creditworthiness. Strong commercial or government customers with good payment history strengthen your application. We can typically work with customer concentrations and help diversify your portfolio over time.

Documentation Requirements

Basic documentation includes accounts receivable aging, sample invoices, customer list, and business formation documents. The streamlined process requires minimal paperwork compared to traditional loans.

If you meet these minimum requirements, you will then need to meet a plethora of additional financing and industry-based requirements that will be based on the size of the loan along with the intended use of the loan.