How does factoring work?
Step 1: You deliver goods or provide services to your customer
Step 2: You invoice your customer and send a copy of the invoice to the factoring provider
Step 3: The factoring provider advances you the pre-agreed % value of the invoice, usually the next day. This is typically between 70% - 90%.
Step 4: The factoring provider collects the outstanding debt
Step 5: The factoring provider takes their fees and then pays you the remaining balance.
