Accelerating Working Capital Cash Flow
When enterprise clients demand 60-day or 90-day payment terms (Net 60 / Net 90), growing agencies often experience cash flow squeezes. Invoice Factoring provides immediate working capital by selling unpaid invoices to financial factors at a small discount.
Recourse vs Non-Recourse Factoring Structures
In Recourse Factoring, the agency remains liable if the client fails to pay. Non-Recourse Factoring transfers credit default risk to the factoring company in exchange for higher processing fees (typically 1.5% to 3% of invoice value).
Managing Factored Accounts in Bizohlala
Bizohlala tracks invoice payment status, due dates, and paid balances to maintain clean accounts receivable ledgers.
How Bizohlala Solves This Automatically
Bizohlala tracks invoice due dates and outstanding receivable balances for clean cash flow management.
Try Bizohlala Free Now →Frequently Asked Questions (FAQ)
Q: How quickly do factoring companies advance cash on approved invoices?
A: Most invoice factoring firms advance 80%-90% of invoice face value within 24 to 48 hours of invoice submission.