You already earned the money. Now you get to wait 45 days for it.
We buy your unpaid business invoices and put up to 90 percent of the money in your account within one business day. Your customer keeps their terms, you stop financing them for free, and the next order gets funded with cash you already earned.
What is invoice factoring?
Invoice factoring is the sale of your unpaid B2B invoices to a third party at a discount. You receive most of the invoice value up front, up to 90 percent with BZKNEES FACTORING, within one business day, instead of waiting 30 to 90 days for your customer to pay. Your customer then pays the factoring company directly on their normal terms. It is a purchase of an asset you already own, not a loan, so there is no monthly payment and nothing to amortize.
Factoring is also called accounts receivable factoring, AR factoring, or invoice financing. Those terms get used loosely and mostly interchangeably, though invoice financing sometimes means a loan secured by receivables rather than an outright sale. What we do is an outright sale.
Why businesses use it: net 60 is a loan, and you are the bank
Here is what actually happens. You sell forty thousand dollars of product to a customer who is bigger than you are, and because they are bigger than you are, they set the terms, and the terms are net 60. So you paid your supplier, you paid your people, you paid the shipping and the packaging and the rent, and now you sit on an invoice for two months while your customer holds your money and does whatever they want with it.
That is a loan. You made it. You are not charging interest on it, you did not underwrite it, and you cannot call it. Meanwhile the next purchase order shows up and you have to tell them you cannot fill it yet, not because you cannot do the work, but because your working capital is sitting in somebody else's accounts payable queue.
Most owners treat that as the cost of doing business. It is not. It is a financing problem, and financing problems have solutions.
How the money actually moves
Three parties, one document, and a wire. That is the whole thing.
You send us the invoice
You bill your customer the way you always have, on whatever terms you already agreed to, and you send us a copy along with proof the goods shipped or the work was accepted.
We fund up to 90 percent
Approved invoices fund by wire or ACH within one business day. We hold the remaining reserve, which is not a fee and not ours to keep.
Your customer pays us
They pay on their normal terms, to us instead of to you, and when they do we release the reserve back to you less our fee.
The document that makes it work is called a Notice of Assignment. It goes to your customer's accounts payable department and it says you have sold the rights to that invoice to us, so payment goes to us. It does not change the amount they owe, it does not change their due date, and it does not change your contract. It changes the mailing address on the check.
If you sell to other businesses on terms, this applies to you
Wholesale and distribution
You buy inventory with cash and sell it on net 30 or net 60. The gap between those two is exactly the problem factoring solves.
Manufacturing
Raw materials and labor go out the door months before the payment comes back. A big new PO should not be a cash emergency.
Staffing and professional services
You run payroll every week or two. Your clients pay on net 45. That mismatch is structural and it never fixes itself.
Commercial services
Janitorial, landscaping, security, facilities. Recurring monthly billing to commercial accounts that pay slowly and predictably.
IT resellers and integrators
You pay the distributor on their terms and bill the client on theirs, and yours are always shorter.
Anyone who just landed a big customer
The order that finally makes the year is also the order that breaks your cash flow. That is the most common call we get.
When you should not factor
We modeled this before we put a single number on this website, and we are going to tell you what the model said even though it does not help us sell anything.
Factoring does not create demand. It removes a financing constraint, and that is all it does. So if you can already fund every order you have, factoring is a cost with no offsetting benefit, and in the scenarios we ran on a business that was not capital constrained, factoring lost money every single time.
Here is the honest test. Take a net 45 invoice collected on day 38, which costs 3.5 percent. On a business running a 30 percent gross margin, factoring pays for itself if it lets you sell about 12 percent more than you are selling now. If you have that much unserved demand sitting in front of you, the math works and it works decisively. If you do not, keep your money.
We would rather tell you that on the website than three months into a contract.
Find out what your invoices are worth today
The application takes about ten minutes. We will tell you yes or no, and if it is no we will tell you why.
BZKNEES FACTORING 