Faq

Factoring is a financial transaction where a company sells its accounts receivable invoices to a financial lender (Factor) at a discount. The company receives immediate cash based on the value of the invoices, while the Factor collects payment directly from the customers. These payments can be received via full notification or non-notification.

Factoring allows businesses to turn accounts receivable into immediate cash, eliminating the need to wait for customer payments. It provides stable and predictable cash flow, enabling companies to operate smoothly, meet expenses, and respond to client demand.

Factoring provides easy access to a consistent cash flow, regardless of customer payment terms. It ensures that your business has sufficient funds for operating expenses especially if customers take longer to pay.

The number of accounts receivable to factor depends on a number of considerations. Provida Financial will provide professional guidance based on your company's needs and goals. Credit history and payment records of invoiced clients will be considered for further discussion.

Cash advance rates depend on industry type, client credit scores, business volume, and selected programs. Advances typically range from 70% to 85% of the invoice value. After payments are collected, the remaining amount owed to your company, minus fees, will be paid.

Factoring is an affordable financing solution. Our team of finance professionals will guide you to an optimal solution based on your circumstances. Fees and contract details will be thoroughly discussed and provided in writing before agreeing to any terms.

Provida Financial works with small to medium-sized companies with strong accounts receivables. If your business meets these qualifications, our expert underwriters can quickly determine your eligibility for financing.