Why do I need it? Your business delivers goods to the end customer and upon receipt, the customer issues an invoice. In order to create liquidity to pay vendors and manage working capital needs right away, you can sell your invoice or receivable to us for discount fee to access immediate liquidity. Distributors, wholesalers and trucking companies would all qualify for AR.

How does it work? Submit a valid invoice, and upon verification we advance up to 95% of the invoice to you. Upon payment from customer, we will net our discount fees, and immediately wire you the balance. You can choose which invoices you want to factor or elect to get a revolving line of credit against your entire receivable pool. We are flexible based on what is best for your company and the risk of collecting the receivable from your customer falls on us.

How much does it cost? As with PO, the cost varies for each transaction. The monthly percentage is based on:

  • The creditworthiness of the account debtor
  • History of payments with account debtor (do they force discounts for late shipments)
  • Consignment and performance standards in contract with account debtor

While there is cost associated to these financing tools, how much more profit could you earn, or expenses could you save with added liquidity? Usually it’s more than the cost of the funds, which is beneficial to any business.

How long does it take? From the time you submit the application and due diligence materials, it takes approximately a week to underwrite and another week or two to complete the account debtor notification process. We have funded transactions in as quickly as 14 business days.

Submission/Approval Process? Initial submission for qualification consists of:

  • Completed and signed IHC application
  • Current financials including AR aging and AP

Once this is all received and evaluated, IHC will issue the client a term sheet and closing list.