First: Your company provides goods or services to creditworthy customers and submit correct invoices.
Second: Your company sells it’s unpaid invoices to an invoice factoring company.
Third: A factoring company verifies the invoices and then funds your business with immediate payment. You get up to 90% of the received amount the same day.
Fourth: Customers make payment directly to the factoring company according to the terms of the invoice. The factoring company then returns the balance of the paid invoice minus a fee.