Our average factoring percentages can be anywhere between 1% and 4%. We recommend asking several factoring companies for quotes to get a good sense of what you will pay for factoring services and to try to get the lowest invoice factoring fees for your business.
Invoice factoring is an excellent alternative for those businesses looking to alleviate different types of financial issues. It is easy to determine if factoring will help your business by asking yourself the following questions:
1. Your financial problems are arising from slow-paying customers or extended payment terms
Most companies finance their receivables because of cash flow problems. If finding a way to obtain these payments sooner by using a cash flow lender would eliminate most of your financial problems, factoring is the solution.
2. Customers keep asking for payment terms you can’t afford
Sometimes companies experience problems when their customers demand 30 to 90 day payment terms. Their current financial situation is often not large enough to cover company expenses while also waiting for customer payments. This puts them in a predicament.
3. You have to turn away orders because you do not have the money to fulfill them
There are times when a company has to turn orders away because it does not have the cash available needed to fulfill these orders. This can sometimes push potential customers to a competitor. This problem is common for companies but can be avoided when using invoice factoring for oilfield companies. Oilfield factoring is financing used by many companies in the country, and 1st Commercial Credit has the experience and can advise how to maximize the value of your outstanding invoices.
Will my business qualify for invoice factoring with 1st Commercial Credit?
Factoring is a form of financing that helps improve a company's cash flow. This alternative financing gives the client access to immediate funds, which can then be used to pay for business expenses and grow. It is important to mention that qualifying for factoring is considerably more accessible than any other type of business financing.
To know if your small or large company would be eligible for accounts receivable funding, here are a few of the main prerequisites: