FAQs
The definition of invoice financing is quite simple; it is the sale of invoices at a discount.
No. Invoice financing or accounts receivable financing is a well-established business practice and is secured short-term financing. It is the purchasing of commercial invoices, receivables, trade acceptances and contract rights.
Companies of all sizes, from sole entrepreneurs to Fortune 500 corporations, use invoice financing as a way to increase their cash flow. Invoice financing can benefit companies in all stages of the business life cycle, from start-ups to mature companies.
Clients come to us from a wide range of industries. However, we do not purchase invoices that are generated by healthcare providers or for clients who sell fine jewelry or any other product that has inherent rights of return.
A client is the company that provides the goods and services and signs a contract with the invoice financing provider. A customer of the client (often referred to as an account debtor) is the company that buys goods or services from the client.
With recourse invoice financing, a client sells its invoices to a provider with the promise to buy back any uncollected invoices. This means the client ultimately takes the responsibility for the payment of the invoice. Non-recourse invoice financing allows companies to sell their invoices to the finance company who assumes the credit risk against insolvency.
- We have a first lien on the client’s accounts receivable.
- Our clients provide goods or services to creditworthy customers and then we verify that the invoices being submitted for purchase are valid.
Learn more about invoice financing.
We fund companies across North America.
No, we do not require financial statements. Our approval decisions are based on the creditworthiness of the customers and not on the financial strength of our client.
No. Many of our clients are in the very early stages of growth and have not yet turned profit, or no longer qualify for traditional bank financing due to financial or operational issues.
Complete our APPLICATION or contact one of our sales directors for more information.
We fund companies with sales that range from $2M – $300M per year.
Our very experienced team has been working together to directly fund businesses since 1985.
The entire underwriting and funding process typically takes 5-7 business days. The initial funding generally takes 24-72 hours after the execution of our Purchase and Sale Agreement.
We do not require traditional personal guarantees as we assume the credit risk on financed invoices. However, if the invoices are not bona fide and valid, the principals may be responsible for damages suffered by Prestige Capital. This is commonly referred to as a validity guarantees.
- We close deals faster than our competition, typically 5-7 days.
- We fund larger deals. We fund companies whose sales are up to $300 million or more.
- We can fund almost all industries across North America.
Different invoice financing companies have different fee structures. We believe in maintaining the highest level of professionalism, integrity and transparency. Our contract is clear and explains our fee structure. Fees are determined based on the volume expectations, the quality of the accounts receivable, and the length of the time the funds are outstanding. There are no hidden charges or ambiguous clauses to interpret. We charge a simple discount fee.
