3 important facts re invoice factoring
1) The financial health of your clients is often one the deciding factors on underwriter approval.
2) Most clients are approved for an 80% advance rate, meaning once your approved invoices are submitted, the factor firm will advance 80% of that invoice to your bank account often within 48 hours. Construction invoices are often capped at 70%, and US government contracts can be approved at times for a 90% advance rate.
3) Not all of your invoices have to be sent in for factoring in most cases. Also, your clients still make out the payment to your business, they just sent it to a separate lock box address established with your financing firm.