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Can I Sell My Invoices to Improve My Cash Flow?

Why sell your invoices ?

  • Need to receive cash quickly
  • Pay any outstanding obligations
  • Free up cash flow that is tied up in Accounts Receivable (A/R)

What is Invoice Factoring ?

  • A financial product that enables businesses to sell unpaid invoices (accounts receivable) to a third party factoring company (a factor).
  • The factoring company buys the invoices for a percentage of their total value and then takes responsibility for collecting the invoice payments.

3 ways to sell your invoices

Transfer without recourse

  • The factor takes on all the risk for unpaid invoices. Lose about 30% of the invoice value!

Transfer with recourse

  • The factor can demand money if it cannot collect from customers.  Lose about 6% of the invoice value but remain on the hook if your customer does not pay.

Transfer Insured Invoices

  • The factor pays top $ for your invoice because the risk of non-payment is removed.  Lose about 3% and not responsible for the outcome.
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