Invoice

Factoring

Invoice Factoring

a.k.a. Factoring, Invoice Discounting, Debt Factoring, Accounts Receivable Factoring

Invoice factoring is type of invoice finance where you "sell" some or all of your company's outstanding invoices to a third party or a factor (like us) as a way of improving your cash flow and revenue stability. A factoring company (like GhanaStartups.org) will pay you most of the invoiced amount immediately, then collect payment directly from your customers.

How it works
Accounts receivable financing is a form of asset-based lending (ABL) utilizing a company’s accounts receivable as collateral. Factoring invoices is also used to mitigate credit risk, as you would know from the steps below....

Step 1
Your company provides goods or services to larger creditworthy customers and submit correct invoices

Step 2
Your company needs to be paid sooner than agreed terms(ie, 30-90 days) with your customers

Step 3
Your company sells its unpaid invoices to an invoice factoring company (like GhanaStartups.org) per a factoring agreement

Step 4
The factoring company verifies the invoices are valid with the company receiving up to 90% of the invoice amount. Once the account is set-up payment can be as fast as 24-72 hours

Step 5
The larger credit worthy customers make payment directly to the factoring company (GhanaStartups.org) according to the terms of the invoice. The factoring company then pays the balance of the invoice back to your company minus a fee.



Eligibility
You need to be a registered business and an existing customer of this platform to qualify. No upfront fees required.


How to Signup
Kindly login and complete this digital onboarding form here.