Invoice Factoring Blog

Link: http://www.ifgnetwork.com

Factoring funding is often provided by traditional old line factoring companies and includes accounts receivable financing, receivable funding and assets based lending approaches. IFG provides innovative spot invoice factoring solutions by offering short-term working capital to growing businesses who often find it difficult to attract conventional funding. By selling credit-worthy invoices for IFG to factor, businesses acquire additional funding for immediate working capital.

It is important to remember that factoring is not a loan – it is the purchase of financial assets, or receivables from a factoring company like IFG, and it differs from traditional bank loans in that bank loans involve two parties, while factoring involves three parties. Banks base their decisions on a company’s credit worthiness, whereas factoring is based on the value of the company's receivables.

Sometimes businesses do not get paid right away for delivered products/services. But every business needs some cash on hand in order to sustain and grow. Spot factoring benefits businesses that do not get paid for 30, 60 or 90 days by advancing up to 90 percent against invoices. IFG looks at the creditworthiness of the client’s customers and can fund within as little as 24 hours, then purchases select invoices at a discount.