The fundamentals of RAPID INVOICE factoring
Many businesses, both large and small, factor their customer invoices (accounts receivable). Factoring is sometimes wrongly perceived as a source of financing of last resort, favored by financially distressed companies that cannot obtain traditional bank financing. In fact, the majority of American factoring arises from contracts between experienced business owners and operators and creditworthy client companies, many of which are in the government contracts, medical services, startup, consulting, and other service industries.
One of the most noted benefits of invoice factoring is the ability for a company to quickly raise cash when a traditional loan is unattainable, or when the company is experiencing rapid growth and needs to purchase materials, meet payroll, pay vendors, and cover other operating expenses.
However, this is not the only advantage. There are a significant number of reasons why companies should consider rapid invoice factoring, and Wave Crest can tailor a solution that fits your needs rapidly, and effectively.
1. The Client determines a ‘target’ dollar amount of financing they would like to secure.
2. They then submit the one or several invoices to Wave Crest for credit approval and sale, generally electronically or by phone.
3. After verification, Wave Crest purchases the invoice, thereby accepting the responsibility of collecting.
4. Client prepares and submits its own invoice and legends it as having been assigned to Wave Crest.
5. Wave Crest and Client put together a schedule of all accounts sold and assigned to Wave Crest.
6. Wave Crest provides regular and detailed bookkeeping and ledger reporting to Client, electronically.
7. Wave Crest collects the account, applies the cash on its records and updates the ledger of purchased accounts. From the cash proceeds collected, Wave Crest remits any balance to Client.