Invoice factoring is a tried and true financial tool that many companies use to improve their short term cash flow. Unlike traditional financing which concentrates on the assets, net worth and profitability of a business, invoice factoring is based on two criteria: your ability to generate revenue streams and the financial condition of your customers (i.e. their ability to pay). And with banks making it more and more difficult to obtain the financial support you need to operate and grow your business, invoice factoring may be right for you.
- Cash to meet payroll, operating costs, purchase equipment and fund growth
- Ability to extend credit to larger accounts
- Relief from slow-pay clients
Will my customers think I’m in financial trouble?
Definitely not. Factoring is a viable financing option for many businesses. In fact, more than 30% of all transportation companies utilize factoring to create consistency in the management of their business.
Will my customers take longer to pay?
Typically no, it’s just the opposite. They will be inclined to pay faster, knowing that we, as a factor, are a prime reporter of credit information and influential credit reference resource.
Do I need to factor all my invoices?
No. You decide which customers you want to submit for factoring. To avoid payment confusion, we do require you to factor all invoices of any particular customer.
How much does factoring cost?
Rates are determined by specific circumstances. Factoring rates depend on the credit worthiness of your customers, your average invoice amount, average payment cycle and factoring volume. The cost of factoring is outweighed by its benefits: immediate cash, credit investigation/analysis, collections and reporting.
The TFS Process
Upon completion of your load, send the completed invoice to TFS.
In as little as 24 hours, TFS sends you an advance payment equaling 80-90% of the invoice amount.
TFS handles the collection of your invoices, allowing you to focus on generating additional business.
Upon receipt of payment, TFS will send the balance of invoice less a small fee.