Invoice Factoring in Roanoke, VA

Invoice factoring (also called business factoring or ar factoring) lets you sell outstanding invoices to a factoring firm, which advances you 70-90% of the invoice face value immediately and remits the balance (minus a fee) once your customer pays. The factoring co assumes the collection effort, evaluates your customers' creditworthiness rather than yours, and provides a revolving cash lifeline as long as you generate new invoices.

Because the factoring company is buying your receivables outright, this is not a loan. You don't incur debt or monthly payments. Instead, the factoring firm earns a discount or fee, usually a small percentage of the invoice value, in exchange for advancing cash and handling collections. Many Roanoke businesses prefer factoring over traditional working capital loans because approval hinges on the payment history of your customers, not your company's credit score or time in business.

Croftbrook Credit brokers your factoring relationship by gathering your recent invoices, customer lists, and a brief overview of your receivables cycle, then matching you with factoring companies for trucking companies, staffing, distribution, or other industries. We submit your package to multiple factoring firms, compare advance rates and fee structures, and help you choose the partner that fits your volume and timeline.

The factoring company will perform a quick credit review of your customers, verify a sample of invoices, and issue an approval within one to three business days. Once the agreement is signed, you submit invoices as you complete work. The factoring co advances funds to your bank account (often same-day or next-day), notifies your customer to remit payment to a lockbox, and releases the reserve balance to you after the customer pays. Because this is a revolving facility, you can factor new invoices each week without reapplying.