Billing companies are companies that offer financing services to businesses, offering the possibility of purchasing outstanding invoices or accounts receivable. Thus giving a discount and an immediate economic injection for companies that need it. Thus, they become an ideal option for a company that needs capital to finance its operations and growth.
In this way, companies will not have to wait for outstanding invoices to be paid, but instead, they can receive an immediate capital injection, improving cash flow and increasing purchasing power thanks to this immediate liquidity that will help the company grow in its business process.
Factoring Companies closest to me in New York
Do you live in New York and need a billing agency? That’s fine. We have selected for you a small list of companies that can help you with this service. According to recommendations from other clients, it is possible to guarantee good service from each one of them.
Factoring Companies near me in Houston
For those who live in Houston, we can recommend the following billing companies. The hours of operation are from 8 AM to 5-6 PM.
Recommended Factoring companies near me
When it comes to managing cash flow, companies often turn to factoring companies for help as a way to quickly access funds. Thus, factoring companies present themselves as an option for immediate cash without waiting for customers to pay. However, not all of them work in the same way, either by charging percentages or the reputation itself, so you have to be careful with which one you choose.
This factoring company specializes in financing small and medium-sized businesses in a variety of industries, including transportation, manufacturing, and services. They offer non-recourse and non-volume limit financing, as well as account management and invoice collection services.
BlueVine focuses on financing small businesses with unpaid invoices from reputable commercial customers. Offering non-recourse, non-volume limit financing, as well as a line of credit and short-term loan financing options.
TCI Business Capital
TCI Business Capital’s mission is to finance companies in the transportation, oil, gas, and service industries by offering non-recourse, non-volume limit financing, as well as account management and invoice collection services.
Triumph Business Capital
This factoring company specializes in financing companies in the transportation and logistics industries. They offer non-recourse financing with no volume limits, as well as account management and invoice collection services. This provides an opportunity for qualifying companies to receive an infusion of capital.
Paragon Financial Group
Paragon Financial Group is a company that seeks to finance small and medium-sized businesses in a variety of industries, such as services, manufacturing, and distribution. Its financing service is characterized as non-recourse and non-volume limited, such as account management and invoice collection.
With a vision to support businesses in a variety of fields, Interstate Capital presents itself as a brilliant option for invoice sales. Their services include non-recourse, non-volume limit financing, as well as account management and invoice collection services.
American Receivable is another factoring company that offers the possibility of selling invoices receivable in exchange for immediate financial injection. This allows both small and medium sized businesses with good credit history to continue to grow.
Specializing in factoring for the transportation industry, they offer non-recourse financing with no volume limits. They also offer account management and invoice collection services on behalf of their clients. This is how they present themselves as an incredible option to consider.
Charter Capital focuses on financing small and medium-sized businesses in a truly broad range of industries, assisting these companies searching for non-recourse financing without a volume limit on billings. This is all done while collecting in installments invoices that will be injected into the companies themselves.
Considered one of the best options in the market due to its excellent financing services for small and medium-sized businesses, Prestige Capital is an incredible option for invoice sales looking to inject cash into a company.
How many factoring companies are there in the United States?
The Commercial Finance Association in the United States estimates that there are currently about 1000 factoring companies active in the nation. Each of these factoring companies offers its service with characteristics that will vary depending on the service provided. Thus, they tend to be very different from one another and may even offer different work formats depending on the case and the client.
However, it is important to consider that not all of these companies work nationwide, so in some regions of the country, it could be challenging to find one. However, this will depend on where you are and, above all, on the field in which you move.
This is because some factoring companies in the country focus on certain specific industries. Thus providing very specific services according to an industry that will adapt to the companies that need their help, adjusting not only the payments made but also the rates charged to the users that require these services.
How much does a factoring company charge?
The cost of factoring services in the United States can vary according to different factors, the company as such, and the service it provides. Some factors to consider are the discount rate, the volume of invoices, the payment term, and the credit risk associated with the customers of the company issuing the invoice.
It is in this way that a factoring company requires specific critical data before being able to put together a final quotation. On the other hand, factoring companies generally charge a fee for the service that ranges between 1% and 5% of the nominal value of the invoices at the beginning. Add to this the interest rates for the period between the payment of the invoice purchase and the customer’s payment.
Some factoring companies may also charge additional fees for services such as customer credit checks, invoice processing, or account management. It is, therefore, essential to carefully review the terms and conditions of any factoring agreement and compare the fees and services offered by various companies before deciding.
How do I qualify for a factoring company?
If you are seeking to qualify for the services of a factoring company, you will mostly need to meet specific standards set by the company. In addition, you must have a company with outstanding invoices from commercial customers, with payment terms ranging from 30 to 90 days.
In addition, you will often need to verify that the company has a solid base of commercial customers with a good credit history. This will ensure that there is a steady flow of invoices that meet the requirements previously established by the factoring company. Thus, they will make the decision whether to support you financially or not once they know whether or not they will receive payment.
Normally, factoring companies can also perform a credit check of the company’s customers to evaluate the associated credit risk. This is how they determine whether a client represents a high risk or not, giving way to the factoring being accepted or rejected as the case may be.
What exactly is the job of a factoring company?
In itself, the job of a factoring company is to provide short-term financing to companies with commercial customers who need quick access to cash. This is made possible by purchasing outstanding invoices held by the company, which will be given with a discount in exchange for immediate cash to the company issuing the invoices.
In other words, the factoring company is responsible for buying the invoices in exchange for being able to collect the payment of the invoices from the client of the company that has contracted the services, thus assuming the credit risk associated with late payment or even non-payment of invoices. A risk for which the company charges processing fees and discounts on the cash given.
In addition to providing financing, factoring companies may also offer additional services, such as credit checks on the company’s customers, account management, and invoice collection. Some factoring companies also offer inventory financing services or short-term loans to complement their factoring services.
For years I have studied American finance regulations. All the information in this blog is sourced from official or contrasted sources from reliable sites.
Salesforce Certified SALES & SERVICE Cloud Consultant in February 2020, Salesforce Certified Administrator (ADM-201), and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.