Invoice Factoring: Turn Invoices into Instant Cash Flow

Cash flow is the lifeblood of any business, but long payment terms can create a cash crunch that stifles growth. Invoice factoring, also known as accounts receivable financing, is a powerful financial tool that turns your unpaid invoices into immediate working capital.

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At Brookestone Funding, we help businesses like yours bridge the gap between delivering a service and getting paid. Instead of waiting 30, 60, or even 90 days for your customers to pay, you can get the cash you need to cover payroll, invest in new projects, or simply keep operations running smoothly.

How Does Factoring Work?

Factoring isn’t a loan, it’s the sale of a financial asset. The process is straightforward and typically involves three parties: your business, your customer (the debtor), and the factoring company (the factor).

You Deliver & Invoice: You provide goods or services to your customer and send them an invoice with standard payment terms.
You Sell the Invoice: You sell that unpaid invoice to Brookestone Funding. We advance you a large percentage of its value upfront, typically between 70% and 90%.
We Handle Collections: We take on the responsibility of collecting the full payment from your customer.
You Get the Remainder: Once we receive the full payment from your customer, we pay you the remaining balance of the invoice, minus a small service fee.

This process provides you with immediate liquidity, allowing you to use money that’s already owed to you, but tied up in your accounts receivable.

Why Use Factoring?

Immediate Cash Flow: Access the money you’ve earned in as little as 24-48 hours, eliminating cash flow gaps caused by slow-paying customers.
No New Debt: Since you are selling an asset (your invoice), factoring doesn’t create new debt on your balance sheet, which can be a huge benefit for your credit and future borrowing.
Focus on Your Business: We handle the time-consuming and often awkward process of collections, freeing up your team to focus on core business activities.
Approval Is Based on Your Customers: The approval process for factoring is based on the creditworthiness of your customers, not your business. This makes it an excellent option for new or growing companies that might not qualify for traditional bank loans.
Scalable Funding: As your sales grow, so does your available funding. You can factor a single invoice, a few, or your entire ledger to meet your needs.

Is Factoring Right for Your Business?

Factoring is a powerful solution for B2B (business-to-business) and B2G (business-to-government) companies that rely on invoices with extended payment terms. It is commonly used in industries such as:

Transportation and logistics
Manufacturing and wholesale
Staffing and recruiting
Oil and gas
Construction

If your business has a healthy stream of receivables but struggles with cash flow, factoring can be the strategic solution you’ve been looking for.

Ready to turn your invoices into immediate cash? Contact Brookestone Funding today for a free, no-obligation consultation.

Frequently Asked Questions (FAQ)

Is factoring a loan?

No, factoring is not a loan. It is the outright sale of an invoice (an asset) to a third party.

What is the difference between recourse and non-recourse factoring?

With recourse factoring, your business is responsible for repaying the advance if your customer fails to pay the invoice. With non-recourse factoring, the factoring company assumes the majority of the risk of non-payment. Non-recourse factoring typically comes with a higher fee.

How much does factoring cost?

Factoring fees are typically a small percentage of the invoice’s value, which is deducted from the final payment. The fee depends on factors like the volume of invoices, the payment terms, and the creditworthiness of your customers.

What information do you need to get started?

The initial setup requires an application, a list of your clients, an accounts receivable aging report, and a sample invoice. The process is designed to be much faster and simpler than applying for a traditional loan.

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Other Services

P.O. Financing

We provide working business capital based on your business’ projected future sales