Trade Finance Forum › Forums › Trade Finance › Companies › How much time does it take a business to approve and set up for invoice factoring › Reply To: How much time does it take a business to approve and set up for invoice factoring
“The approval process for factoring is normally completed in 1-2 days, if not immediately. Contrasting this with more conventional kinds of lending is advantageous for the following reasons:
Acceptance depends on the creditworthiness of your clients: The finance company will get payment from your client (s). As a result, factoring businesses are concerned about the company credit of your clients. Thus, factors such as your profitability, credit score, use of collateral, length of company, and in some situations, background difficulties, are not taken into account when determining whether you will be approved.
Fewer paperwork: As a result of the aforementioned, it is usually unnecessary to thoroughly check with all your financial information. A factoring company often requests a brief inquiry and a few documentation to confirm your name and background, business setup, and clientele.
So before you realize it, the setup has been authorized for you.”