Thousands of businesses across the U.S and Canada utilize invoice or accounts receivable factoring to aid the cash flow of their growing business. The reality is that factoring provides an easy and accessible way to access cash for B2B businesses that is able to meet the varying needs of a company. As a business' receivables grow, so does their access to cash which enables them to continue to build on that growth. With the primary qualifications being to have customers that are able to pay their bills and outstanding invoices for completed work, many businesses can qualify for this type of financing.
After a business is set up, it will submit invoices along with any backup documentation to substantiate the invoice to the factoring company. Once they verify that the invoices are good, they will fund generally 80-95% of the invoice value to the business utilizing the service. Once the customer pays the invoice, the factoring company takes a fee of typically 1-3% and remits the remainder to the business utilizing the factoring services. So in the end, they will receive 97%-99% of the invoice value and pay the other percentage to have the money advanced to them. This gives their business the ability to stabilize cash flow, to meet their payroll needs, pay taxes, materials, or any other needs that arise.
To get set up, a business will need to go through a relatively straight forward application process that can take anywhere from a few days to a few weeks depending on a number of factors. The basic steps would be filling out and submitting the documentation needed to complete the application, agreeing to basic terms, signing the contract and then submitting to the factoring company the invoices and backup you are wanting to fund so they can do their initial notification and verification.
Is Meritus Capital the right factoring company to meet my cash flow needs?
Meritus Capital has been in business for almost 20 years funding billions of dollars to businesses across the U.S and Canada. We have collaborated our experience with new technology to improve our application process and systems for our clients and prospects looking to use our services. At Meritus Capital, we have developed the following to make the process as painless as possible:
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