We specialize in serving various industries in Houston and surrounding areas in Texas. Many kinds of businesses use invoice factoring, especially growing businesses with generous profit margins that may not qualify for traditional bank loans or financing. What kind of businesses use invoice factoring? In other words, once you have fulfilled your end of the deal, we will gladly take it from there and get you paid. If we deem your client a credit-worthy risk, we will take it on, provided that you have completed, delivered, accepted, and approved all products, goods, and services specified on the invoice. That is, your business’s credit-worthiness is a non-issue. Whether or not we will buy an invoice from your business depends on the credit-worthiness of the customer or client you’re invoicing. Does my business meet the requirements for invoice factoring? This only happens on very rare occasions. On the other hand, after 75 days, if your client doesn’t pay due to a dispute with you, then you agree to repurchase your invoice from us. You keep the initial 70% to 80% that we advanced to you. But you also won’t receive the remaining balance-the 20% to 30% not advanced up front. If your client files for bankruptcy within the first 75 days after we purchase your invoice, we will fully assume the loss of the money that we advanced to you. This rarely happens, but it depends on the circumstances of nonpayment. What happens if my client never pays you? Most importantly, we designed the entire process as a cash-flow sensitive solution that won’t interrupt your daily operations. Once we collect on the invoice, we will send you the remaining balance (the 20% to 30% not advanced up front), minus our small factoring fee. You can stay focused on what you do best-running your business. Now it’s in our hands and you don’t have to worry about it. Once approved, we will advance you 70% to 80% of the invoice amount within 24 hours. Walk me through it-what’s the invoice factoring process like?įirst things first, you should apply for our free quote or give us a call to talk more.īut to give you an idea of the process, you would fax us an invoice purchase request. Once the invoice is paid, the business will receive the remaining balance, minus a small factoring fee for the factoring company’s troubles. That’s right-the factor does the dirty work so you can concentrate on your business. Then the factor sets out to collect on the invoice. If everything checks out, the factoring company will advance most of the value of the invoice (usually around 80%), giving the business immediate cash to put to good use. The factor will verify the invoices and do a credit check on the company that owes the business. A business simply hands over their unpaid invoices to the factoring company, also called a factor (such as American Commercial Capital, LLC). Thus, factoring helps ease or even eliminate business cash-flow restrictions. Why might a business want to do this? Well, it allows the business to get paid on invoices immediately instead of waiting the usual 30 to 90 days (or more) for a client to make a payment. ![]() To put it simply, invoice factoring is when a business sells its accounts receivable (invoices) to a third-party company at a discount. But a potentially better option for many Houston businesses, large and small, is one that is often overlooked: invoice factoring. When a business’s accounts payable starts to outrun their accounts receivable, they often look towards credit or traditional bank loans to solve their monetary woes. ![]() Regardless of the vibrant economy and all the resources at their disposal, entrepreneurs and business owners inevitably run into cash-flow problems somewhere along the way. That also means there’s an array of Houston invoice factoring companies to choose from, but we’ll get to that later. From small family-owned businesses to large healthcare and technology firms to manufacturing and trade companies of all sizes, Houston is bustling with diversity and opportunity for the entrepreneurs and business owners who call it home. is filled with people and companies working in an array of growing industries. Houston Factoring for Businesses to Help Improve Cash FlowĪs the Energy Capital of the World, Houston is known as an oil and gas town, but the truth is more complicated.
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