Invoice Factoring
We offer invoice factoring to your business by providing your company with immediate cash in return of assigning your company’s unpaid invoices (the receivables) to NKNI. Cash is typically an agreed percentage of the invoice amount normally up to 90% of that amount to be paid to you upon assignment, and once the invoice is paid, the remaining balance, minus a fee, is returned to your company.
Invoice Factoring
Why Invoice Factoring?
You are unable to obtain or are struggling to increase an existing line of credit.
You or your business issues invoices with up to 90-day payment terms and cash flow
strains could be eased with an expedited payment turnaround.
Your business is susceptible to seasonal fluctuations in cash flow.
You are an established business with plans for expansion into new markets.
Invoice Factoring
Benefits Of Invoice Factoring
Invoice factoring provides companies with immediate access to cash by converting their accounts receivable into cash. It is also the only form of financing that grows proportionally with your sales. As you grow your business and invoice greater amounts, the amount of cash that you are potentially eligible to receive from factoring grows.
Factoring Is Fast and Easy
Unlike traditional bank loans, invoice factoring approval is based in part upon the creditworthiness of the business customers. Initial funding can be as quick as 48 hours with subsequent fundings within 24 hours or in some cases same day.
No Debt To Repay.
No need to worry about the added liability incurred with a bank loan. Factoring isn’t a loan, which means businesses do not take on additional debt. This can be advantageous for businesses with a cash flow deficit, or those that do not qualify for traditional loans.
Your Access to Cash Grows with Your Company
As your company grows and sells more product or services, your accounts receivables grow. This means you have more invoices to factor and therefore may receive larger up-front advances from your factoring company to accommodate your growth.
Invoice Factoring
Factoring Helps Build Business Credit
Getting paid faster on your invoices improves cash flow, enabling you to meet your
credit obligations in a timely manner. When you have adequate cash flow and pay
your bills on time, you establish or improve your credit rating.
Your Customer’s Credit is Important
The payment of your invoices by your customers is what pays the factoring company. For that reason, your factoring partner is focused on your customers’ credit worthiness. This is especially helpful if your company is young, growing rapidly, or still building credit, or if you have had recent credit issues.
