Turn Your Invoices Into Cash Today
Quick Funding (24 hours)
Invoice Factoring Companies in Minnesota
Many Minnesota businesses have been looking for ways to improve their working capital. One of the most popular ways for a company to speed up their revenue stream is invoice factoring.
What Is Invoice Factoring?
Invoice factoring is when a you sell your outstanding invoices to another company to collect. That company then pays you most of the value of your invoices, collects the amount owed, and then pays you the remainder minus their discount rate. Most initial funding is between 70-90%, and the discount rate is usually between 0.5-1.5%.
Not everyone stands to beneft from invoice factoring though. Some companies may not have invoices large enough to justify factoring, and others may worry that customers will be nervous about paying a third party. However, many companies can benefit from invoice factoring services, including those who are looking to increase their working capital without taking out a loan.
Best Invoice Factoring Companies in Minnesota
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Minnesota we could find include Crestmark. They offer recourse and nonrecourse factoring for a wide variety of industries. Factor Funding Companyis another invoice factoring service that Minnesota residents should look in to. They provide fast approval, faster funding, and work with many small businesses. Finally, we recommend checking out Lendvo. Lendvo has a fast approval process and specializes in online businesses.
Benefits of Invoice Factoring
The first benefit of invoice factoring is that companies don’t have to wait to receive payment for their services. This is especially important for companies that are growing and struggling to keep up with the contracts they have. Another benefit to invoice factoring is that it doesn’t show as a loan on a company’s credit report. This can be a lifesaver for companies that may have had credit difficulties in the past but still have a solid underlying strategy. Invoice factoring is also beneficial in that it allows companies that have no credit history, or a bad credit history, to get the working capital they need to grow their business. Many startups are built on the back of invoice factoring.
There are many reasons to try invoice factoring. Check out some reviews of these companies and see if they’re right for you.