How Does Factoring Work - Rethink Factoring ™

Is waiting 30 to 60 days for payment of outstanding invoices affecting your business? Invoice factoring improves cash flow and stabilizes revenue. At New Century Financial, we proudly provide business factoring and financing services for manufacturing, oil and gas service, distribution, staffing, service, information technology, energy service, transportation industry companies.

How does factoring work? With invoice factoring, a factoring company buys your outstanding invoices and provides immediate payment, meaning you can sell all or part of your accounts receivable and your customers pay the factoring company directly. Obtain the funds you need to bridge your short-term expenses, repay a loan or any other reasons fast access to capital is necessary. Factoring provides businesses with financial security. Factoring is not a loan, so businesses who use it do not incur debt.

Instant Pre-Approval for Business Factoring

In business, time is money. Instant pre-approval saves time and effort. You could go to a bank for a loan to receive financing, but that process is time-consuming and more difficult. With factoring, you receive instant pre-approval after providing basic information about your business.

This basic information includes the number of current customers, average monthly revenue, the number of your outstanding invoices and the amount and if there are current or past liens against the business. You will need to provide supporting documentation.

You don’t have to worry about a credit check. The factoring company wants to know about the creditworthiness of your customers, not your business. Good customer creditworthiness is the deciding factor, no pun intended. Once your application is reviewed, you’ll receive a proposal. The proposal includes the amount of your first invoice installment, the factoring rate and the length of the term. If approved, a contract is sent right away. 

After approval, you’ll receive the first installment on your invoices. That generally consists of between 80 to 90 percent of the total invoice amount. The second installment, minus our factoring fee, is paid when your customer pays the invoice in full. It’s a simple and straightforward process. 

Here are just a few New Century Financial invoice factoring advantages:  

• Under five-minute application form submission.
• No obligations.
• Up to $10,000,000 in credit facilities.

Fast Approval on Initial Funding

Subsequent requests can be approved in as fast as an hour by your dedicated account manager. You can choose which invoices or part of invoices to factor.

For more information about New Century Financial and how factoring can benefit your business, contact us today. Take 5 minutes to apply now and receive a proposal within 24 hours.

Provide Invoices for Purchase

New Century Financial sets up a factoring account for handling your transactions. You can use this account for all future invoice financing.

Update your customers with your New Century Financial-assigned PO Box or bank account where you can accept payment in your business name.

Get Funded Fast!

Get funded fast by choosing ACH. Receive funds in under a day and pay no transfer fees or choose wire for same-day availability. Fund as much and as often as you want!

Once clients start using our services, they realize the difference prompt invoice payment makes in the health of their business. Many clients use factoring regularly, as it alleviates so many of their financial issues. It effectively eliminates the concern of slow-paying customers affecting their bottom line. 

For more information about New Century Financial and how factoring can benefit your business, contact us today. Take 5 minutes to apply now and receive a proposal within 24 hours.