"Debt Factoring" is another term for the more commonly known "Invoice Factoring". Debt Factoring involves the sale of an invoice the sale of an invoice by a client to a 3rd party finance/factoring company in order to receive most of the invoice's value in advance of the payment from the end customer/payer.
The factoring company is basing their funding on their clients accounts receivable. The factoring company is relying on the ability for the end customer or payer to pay their accounts payable or debt. Hence the name debt factoring.
The end customer is informed that their debt now needs to be paid to the factoring company
The reason why so many companies utilize a finance facility like this is the following:
What are the fees or costs of debt factoring? The cost of factoring varies greatly depending on several different factors. The principle one is typically based on how long the customer takes to pay their invoices, followed by the volume of business a company is looking to receive funding on, what industry they are in, and how credit worthy a business's clients/ customers/ payers really are.
Funding fees start at as low as under 1% of the total invoice value and the price will be tiered as the invoice remains unpaid. Every day or every 5, 10, 15 or 30 days, depending on how the factoring company has it set up with their client, the fee will incrementally increase. Sometimes a flat fee will be arranged so a business knows exactly how much will be coming off each invoice. To get an idea of Meritus Capital's low fees check out our invoice factoring page at
s low fees check out our invoice factoring page at https://www.merituscapital.com/invoice-factoring
Each factoring company will take a different amount of time, but typically a to get set up, but a business should expect 7-14 days typically. Meritus Capital is proud to be able to offer funding quickly with their new online application and easy eSigning capabilities! With this process now easier with Meritus Capital you could receive debt factoring in as little as 3-7 days.
If you would like to get a quote or start the process to receive debt factoring - it is simple. Go here: https://app.merituscapital.com/
You can quickly sign up, fill out some basic basic information, upload an AR aging and receive a quote within hours. We look forward to hearing from you.
Leave your contact info and our representative will reach out to you or simply call us at (877) 648-3709
Follow us on social media