BEST MODERN FACTORING COMPANY

A FACTORING COMPANY FOR 
SMALL BUSINESS & TRUCKING

eCapital is a modern, award-winning factoring company. Get a no obligation quote online or call us to have a chat with one of our factoring experts.

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UNLOCK THE CASH
IN YOUR OUTSTANDING INVOICES

Tired of playing the net 30-60-90 game? Looking for the fastest invoice factoring solution? eCapital quickly releases working capital from outstanding invoices so you have the money you need to take care of your business.

Invoice Factoring

FASTER

The quickest way to get the cash you need.

Factor Invoices

MORE FLEXIBLE

Terms designed for you.

Invoice Financing

MOST MONEY

Expertise to maximize working capital.

USEFUL LINKS ABOUT INVOICE FACTORING & FACTORING COMPANIES

When it comes to all things factoring, we at eCapital are long-time experts in the field as an award-winning factoring company. Below is a list of useful resources to learn more about factoring companies and factoring your invoices.

Invoice Factoring

Invoice factoring is a financial transaction and a type of debtor finance. In an invoice factoring agreement, a business sells its accounts receivable (invoice) to a third party (called a factor) at a discount. A company will often factor its receivable assets to meet its present and immediate cash needs versus waiting for payment based on original contract terms.

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Freight Factoring

Freight factoring, truck factoring or logistics factoring is a specialized form of invoice factoring designed for the transportation industry. It is a mainstream financial strategy that involves factoring transportation receivables by the selling of account receivable invoices at a discounted rate in exchange for immediate cash.

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Payroll Funding

Payroll funding, sometimes referred to as payroll financing is a business solution specifically designed for the staffing industry. Our payroll funding solutions include both invoice factoring and asset based lending.

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Modern Factoring

Utilizing advanced technology, the most progressive modern factors direct funds to clients the instant invoices are approved for funding without the constraints of cut-off times. Once in your account, customers can self-direct funds 24 hours a day, 7 days a week, straight into your bank account or to pay bills and suppliers. 

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Factoring Line of Credit

Factoring Line of Credit was designed exclusively to help companies gain control of their cash flow with cost effective and reliable access to working capital.

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Debt Factoring

Debt factoring is when a business sells its accounts receivables to a third party at a discount, enabling companies to immediately unlock cash tied up in unpaid invoices without having to wait the usual payment terms.

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Factoring Rates & Costs

The total cost of a factoring agreement is a combination of a factoring rate and additional fees. To understand factoring agreements, you need to first understand the various ways that rates and fees can be calculated.

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Recourse vs. Non-recourse Factoring

Recourse factoring is the most common and means that your company must buy back any invoices that the factoring company is unable to collect payment on. You are ultimately responsible for any non-payment. Non-recourse factoring means the factoring company assumes most of the risk of non-payment by your customers.

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GET PAID FASTER WITH INVOICE FACTORING FROM A MODERN FACTORING COMPANY

Invoice factoring is the fastest way to raise working capital by unlocking the cash in your unpaid invoices. Don’t wait 30, 60 or 90 days to get paid. Get the cash flow you need, when you need it with our invoice factoring solution.

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SIGN UP WITH A MODERN FACTOR

It’s quick and easy to get started.

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UPLOAD YOUR PAPERWORK

Use our online portal to submit invoices for payment.

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GET PAID INSTANTLY

Receive your funds same day.

WHAT IS INVOICE FACTORING?

Invoice factoring is a financial transaction and a type of debtor finance. In an invoice factoring agreement, a business sells its accounts receivable (invoice) to a third party (called a factor) at a discount. A company will often factor its receivable assets to meet its present and immediate cash needs versus waiting for payment based on original contract terms. Factoring invoices is also used to mitigate credit risk.

Factoring is also referred to as accounts receivable factoring, invoice factoring and sometimes erroneously accounts receivable financing. Accounts receivable financing is actually a form of asset-based lending (ABL) utilizing a company’s accounts receivable as collateral.

WHAT IS A FACTORING COMPANY?

A factoring company buys a business’ unpaid invoices in return for a factoring fee which is deducted once the full payment has been collected from the customer. A factoring company enables businesses to release cash by purchasing their invoices at a discount.

Most factoring companies are recourse arrangements, which means that you will be responsible for any unrecoverable invoices.

WHAT ARE THE ADVANTAGES
& DISADVANTAGES OF INVOICE FACTORING?

When it comes to all things factoring, we at eCapital are long-time experts in the field as an award-winning factoring company. Below is a list of useful resources to learn more about factoring your invoices:

ADVANTAGES
OF INVOICE FACTORING

  • Invoice factoring is easier to get than most solutions. The primary requirement is that you have invoices for delivered work that are payable by creditworthy customers.
  • Enjoy better working capital, which means more money for growth projects, staff training or stock purchases
  • Be able to move away from more restrictive forms of finance, like small business loans or overdrafts
  • Benefit from your chosen finance provider’s in-house credit control processes
  • Be able to focus on running your business, instead of chasing clients for payment

DISADVANTAGES
OF INVOICE FACTORING

  • Although factoring is a great solution, it is not perfect. No solution is. There are some disadvantages of invoice factoring – your clients will be informed that you’re using an invoice factoring service, and your factor will contact them to collect on factored invoices, which means:
    • You won’t be able to maintain your standard approach to client communication when it comes to billing
    • The image of your company may be affected, particularly if your clients assume that you are not established enough to oversee your own credit control

WHAT ARE THE DIFFERENT TYPES OF INVOICE FACTORING FOR TRUCKING & SMALL BUSINESS?

The needs of SMEs tend to vary according to growth stage and industry. To help you work out which type of factoring financing will suit your business, here is a brief guide to our five options:

INVOICE FACTORING

Account receivable factoring provides businesses with an option to finance their venture without taking out a loan. This is a type of debtor finance where SMEs sell its invoices to a third party at a discount, in order to provide an immediate cash injection. There are many reasons why a business may factor an invoice, including increasing cash flow and mitigating credit risk.

FREIGHT FACTORING

Freight factoring, truck factoring or logistics factoring is a specialized form of invoice factoring designed for the transportation industry. It is a mainstream financial strategy that involves factoring transportation receivables by the selling of account receivable invoices at a discounted rate in exchange for immediate cash.

STAFFING FACTORING

Staffing factoring, also known as Payroll Funding allows staffing companies the ability to get paid upfront on invoices. It is a funding solution that can be used by staffing companies such as healthcare staffing firms, Human Resources consulting firms, headhunters, general staffing agencies, Information Technology staffing agencies, and many more. These agencies can be paid at unpredictable times and in different terms.

NON-RECOURSE FACTORING

Under non-recourse factoring service, there is an agreement between the client and the factor wherein the factor shall bear the responsibility to absorb the cost of receivables that remain unpaid. This will make the credit risk stay with the factor and not with the client. The business gets unaffected and can continue to function without having to worry about bad debts.

RECOURSE FACTORING

In recourse factoring, both the client and the factor agree on a settlement wherein the client needs to buy back the unpaid bills receivable from the factor. This will make the credit risk stay with the client and not with the factor in case of the debtor does not pay. The risk of bad debts always remains in the business.

SPOT FACTORING

Spot factoring is a way for a business to access funds by selling unpaid invoices to a 3rd party, a spot factoring company, on a one off basis in order to receive payment quicker. The business will agree rates and fees with a spot factoring company and then decide which invoice/invoices it wants to assign to them.

IS FACTORING RIGHT FOR YOUR BUSINESS?

Generally speaking, invoice factoring facilities are best suited to companies that sell to other businesses on credit terms, and turnover more than $50,000 a year.

Invoice factoring can be used by any industry that sells products or services to another company, but in particular, industries that suffer cash flow problems due to the nature of their business.

Industries that experience high production costs, seasonal sales slow downs, slow paying clients, experience unexpected growth and other unpredictable costs affecting their day to day operational cash flow use factoring as a non debt solution to their cash flow problems.

These industries will include (but are not limited to) trucking companies, staffing agencies, manufacturing, construction and service industries.

WHY CHOOSE eCAPITAL AS YOUR INVOICE FACTORING COMPANY?

When it comes to all things factoring, we at eCapital are long-time experts in the field as an award-winning factoring company. Below is a list of useful resources to learn more about factoring your invoices.

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24/7 Access to Your Cash

Manage your money your way. With eCapital Connect, our proprietary account management software, you are in control of your finances at anytime, day or night.

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Fair & Affordable Rates

Our rates are the most competitive in the industry. We know what it takes to maximize your working capital and will customize a solution to meet your needs.

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Facilities Up To $30 Million

We’re ready and able to provide the funding your business needs now and into the future. As your business grows, so does the invoice financing available to you.

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Seamless Transition

We understand that working capital is critical to your business operations. We’re pros at onboarding new clients and our account management team is here for you every step of the way.

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No Hidden Fees

We believe in transparency in all we do. That means no surprises when it comes to our agreements.

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Tips and Advice

Tap into our in-depth industry knowledge to better manage your business. Get smart, actionable advice and useful tips from our finance experts.

“The communication and support has been outstanding. Providing me with all the information I needed regarding new clients coming onto our books. The system they use is so user friendly and the drawdown payments are very efficient in the fast moving world of temporary payroll.”

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INVOICE FACTORING HAS BEEN MODERNIZED WITH eCAPITAL’S FACTORING SUITE OF PRODUCTS

Your business demands a constant source of money. That’s why eCapital provides the best invoice factoring in the industry with the most money, in more ways than anyone else. Plus, the lowest factoring rates and best service from experts who understand the needs of transportation companies & small businesses.

LEARN MORE ABOUT INVOICE FACTORING IN OUR BLOG

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FREQUENTLY ASKED QUESTIONS

Why do Businesses Use Invoice Factoring

Invoice factoring is a financing solution that allows your small business or medium sized business to release cash against your outstanding customer invoices before they’ve been paid. Factoring invoices is the fastest way to improve cash flow to your business bank account.  Some of the reasons business use invoice factoring are to:

  • Pay Employees on time
  • Hire More Staff when needed
  • Cover Operating Costs to Maintain Cash Flow
  • Maintain Growth Rate and Expansion
  • Grow your Accounts
  • Pay Bills on time
  • Take on more projects

Is Invoice Factoring a Business Loan?

No. With invoice factoring, you are selling an asset (unpaid invoices) to quickly release working capital, and the invoice factoring company would be responsible for collecting the unpaid invoices. 

Who benefits from factoring?

Factoring services are a financial solution for businesses who trade with other businesses.  

How long does it take to set up invoice factoring with you?

Invoice factoring is quick and easy to set-up! We’ll reach out within 24 hours of you contacting us. That’s why our clients like working with us. We don’t hang around.

How much will invoice factoring cost me?

Costs (factoring fees) are dependent on the invoice factoring services you use and the amount of invoices and invoice amounts we handle for you. We want to earn your business and offer extremely competitive rates. Contact us today for a free, no-obligation quote.

Invoice factoring vs. bank loans: What’s the difference?

In a traditional environment, a company or small business owner will borrow money in the form of a cash advance from a lending institution and pledge collateral to secure the bank loan. Over time, the company or individual will work to pay this loan back with interest. Depending on the loan structure, payments may be due monthly, starting immediately, or the full principal and interest will be due at some specified date in the future.

Invoice factoring, by contrast, uses your existing invoices as collateral. If you have outstanding invoices due from your customers, you can sell those invoices to a third party for a discount. You’ll get an immediate injection of cash, and your customers will pay their invoices directly to the third party for goods and services.

Did you know factoring can improve your credit score?

Since invoice factoring does not cause your company to incur any debt, it can actually increase your credit score through consistent cash flow and financial stability.

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