How soon can your business use invoice factoring?
If your company is considering invoice factoring, it may be due to a cash flow crunch caused by seasonality, rapid growth, or other opportunities or challenges. Your company has steady sales, but industry standards mean you wait as long as 90 days to receive payment for services rendered or products that have already left your warehouse. Turning to invoice factoring, which provides a line of credit in exchange for existing unpaid invoices, can be a powerful solution.
The gap between completing your side of the deal and getting the money owed to you can make it hard to pay bills, handle emergencies and develop a steady cash flow. For these reasons, business owners often ask how long it takes to go through the invoice factoring process and receive the funding their companies need to continue operating on solid footing. Let’s explore the timelines related to invoice factoring, as well as how you can make the process as fast and as smooth as possible.
Invoice factoring: A speedy solution to cash flow concerns
Traditional forms of financing, such as loans and lines of credit secured with major business assets, can involve weeks-long processes that limit their effectiveness for businesses with short-term needs. TAB Bank is happy to offer invoice factoring as a faster, more efficient processing for acquiring funding through the use of unpaid invoices as collateral. Instead of waiting several weeks for final approval and the funds your business needs to develop and grow, you can reap the benefits of a streamlined process. What does applying for invoice factoring through TAB Bank look like?
- A decision in as little as a few minutes, pending credit approval.
- When approved and with all necessary information in order, you can receive funding the same day you apply.
- A dedicated online banking portal that provides easy access to funding and information about your invoice factoring agreement with TAB Bank.
- Support and information from a dedicated relationship manager, both at the beginning of the process and throughout your partnership.
The advantages of a fast decision and funding, pending approval, are clear for a variety of companies. However, there are certain steps you should take to ensure the application process is as straightforward as possible and doesn’t lag due to delays on your end.
Tips for receiving a quick invoice factoring decision
A complete, current and accurate application is perhaps the most important part of facilitating a quick invoice factoring decision. When you can share all of the requested information related to business operations and financial concerns without delay, you speed up the process. You should make sure you have easy access to bank statements and similar documents before starting your application.
The need for accuracy on applications can’t be overstated. Provision of inaccurate information can be grounds to have your invoice factoring agreement withdrawn immediately. Beyond not knowingly providing false data, which shouldn’t be a concern for ethical business owners, this means you can’t provide old information or a best guess about a specific, definite figure. Make sure you answer the application questions to the best of your ability. Reach out with questions about any areas of confusion instead of completing the application without full confidence and you will likely save some time in the process.
Invoice factoring from TAB Bank can lead to same-day funding when your business receives the necessary approvals. As you seek out solutions to cash flow crunches caused by the delay between selling a product or service and receiving payment, remember the speed and convenience we can provide. Have any questions? Reach out today to learn more.
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