An Overview Guide to Invoice Factoring Companies

February 16, 2022

Cash flow is an issue for businesses of all sizes, but for small and midsize organizations, cash flow issues can cripple your ability to operate. Business owners don’t have to take on additional debt to maintain operational costs like payroll and vendor payments. Invoice factoring is a service that eliminates the stress of waiting for customers and clients to pay for services and deliveries already rendered. If you’re unfamiliar with factoring services or unsure if they’re suitable for your business, read our step-by-step guide to invoice factoring companies.

What is invoice factoring?

Invoice factoring companies essentially “buy” your business’s unpaid invoices. You get the instant cash flow you need to pay your bills, employees, or vendors without waiting for customers to pay their invoices.

When you use factoring services, you don’t have to secure compensation from your customers. BP Financing takes ownership of the invoice and the responsibility of getting payment.


Is factoring different from a small business loan?

Invoice factoring doesn’t require business owners to take on additional debt because it’s not a small business loan. An invoice factoring company doesn’t need to evaluate your business assets, credit score, or current debt load.

All businesses have to submit for invoice factoring is their outstanding invoices. BP Financing provides a portion of the money that a client or customer owes and keeps a percentage. We keep a small amount because we take on the responsibility for securing payment for the invoice.

How do you get funds from an invoice factoring company?

If you’ve applied for small business loans in the past, you know the intensity and stress of the process. There’s also a long wait for the delivery of funds. It’s so much easier to get cash from an invoice factoring company. As you develop a relationship with an invoice factoring company, the process can become even more streamlined.

With BP Financing, it’s three easy steps to get funds:

  1. Ensure your paperwork is in order and the delivery or services are completed.
  2. Upload information to BP Financing, including:
  • Rate confirmation
  • Bill of Lading
  • Invoice
  1. Get funds deposited to your business account, often on the same day

It’s stress-free and streamlined to get money with invoice factoring.

Who should use factoring services?

Invoice factoring is common in the trucking industry, where operational costs are high, and there are long lag times for invoice payment.

However, small and midsize businesses across industries can use factoring services to improve their operational costs and access cash flow without taking on additional debt.

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How can invoice factoring benefit your small business?

There are considerable benefits to incorporating invoice factoring into your business, especially when you’re moving into new markets or growing. Small businesses often have to keep shorter terms on their invoices, limiting their client and customer base.

By incorporating invoice factoring into your billing structure, you can provide longer-term invoices to the clients who need them without compromising your cash flow.

BP Financing is an invoice factoring company working with clients nationwide to provide operational cash flow.

Our team comes from 15 years of experience in the trucking industry, so we know how crucial it is to get your invoices paid promptly to meet operational demands. We founded BP Financing to provide accessible, straightforward service to small and mid-sized businesses across industries. With dedicated customer service personnel, you’re able to access cash flow and support, and answers when you need them. BP Financing’s mission is to make running your business more accessible by providing solutions to the most stressful problems you encounter in the day-to-day.

Contact BP Financing to learn more about our services and how your business will benefit from an invoice factoring company.

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