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Unlike with invoice funding, the client is spending the factoring business in the place of you.

Unlike with invoice funding, the client is spending the factoring business in the place of you.

Whenever you factor an invoice, you will get a percentage of this invoice amount upfront through the factoring business as well as the rest of the invoice amount without the factoring company’s cost if your client will pay the invoice. As an example, with a $1,000 invoice which includes net-60 terms, you will get $900 today and another $50 in 60 times, making $50 for the factoring business.

In training, you might need to inform your client to deliver repayment towards the factoring business. Some factoring businesses will instead allow you to inform your clients to deliver repayments to a bank-account that the company that is factoring, however your clients won’t know you’re using the services of the factoring company. Continuer la lecture de Unlike with invoice funding, the client is spending the factoring business in the place of you.