Invoice Factoring Blog

Link: http://www.ifgnetwork.com

Companies are scrambling to stay afloat during these challenging economic times. That's why there is more interest in a new factoring product known as "single invoice factoring."

Many people do not understand the difference between spot factoring (invoice factoring) and full on accounts receivable factoring, where we handle all of a company's invoices, or accounts receivables. if you are one of these poeple, then read up.

The oldest and most widely used forms of funding for businesses, standard invoice factoring has been around for thousands of years. Many businesses do not get paid immediately for delivered products or services; however in order to sustain and grow, every company needs cash. A newer form of accounts receivable factoring, however, is spot factoring, or single invoice factoring. It is of benefit to firms that do not get paid for 30, 60 or 90 days. How? IFG advances up to 90 percent against invoices.

Once IFG has looked at the creditworthiness of the client’s customers, funding can be provided within as little as 24 hours. IFG does not expect to buy 100 percent of a company’s receivables, and there are no minimum or maximum sales volume requirements.

IFG offers clients this “use it as you need it” spot funding option, therefore every invoice purchase is a separate transaction and does not form part of a portfolio lending approach. The transaction is modeled as a buy-sell transaction. Steps include:

•Due Diligence–After being approached by a prospective client, IFG undertakes a thorough due diligence program that typically takes about 24 to 48 hours.
•Review Invoices–Once the due diligence is completed, the client is at liberty to offer invoices to IFG for purchase.
•Credit Verification–After receipt of the invoices, IFG will check the credit of the debtor named on each invoice and make sure the sale represented by each invoice has been satisfactorily complete.
•Debtors’ Notification–Once credit has been verified, each debtor is notified of the purchase by IFG and the client is paid for the invoices.
•Debtor Payments– At the end of the credit period the debtor will make payment directly to IFG thus completing the transaction.

IFG’s single invoice factoring service is user friendly, fast, flexible, and cost effective. If the client chooses to offer further invoices to IFG, the total transaction time is often reduced to two to eight hours. IFG’s professional rates are competitive.

Fore more information go to: www.ifgnetwork.com