Virginia Factoring Companies

Invoice factoring is the most common type of accounts receivable financing in Virginia. It involves a business selling its outstanding invoices to a factoring company in exchange for immediate cash. However, you don’t need to sell your full invoice portfolio to the factor. Spot factoring allows you to sell individual invoices, so you can get funding as you need it, without committing to a long-term contract. 

There are two primary types of factoring. With recourse factoring, your business will have to buy back invoices from the factoring company if your clients do not pay their invoices. With non-recourse factoring, however, if one of your customers doesn’t pay their invoice, the factoring company accepts the loss.

If you’re not looking to sell your invoices or if you need additional financing on top of factoring, there are other financing options that you can consider. Some of these options are provided by factoring companies so that you can use them alongside your regular factoring arrangement. Here are some alternative factoring solutions to consider in Virginia if you’re looking for financing options beyond traditional invoice factoring:

The Virginia Small Business Financing Authority (VSBFA) offers a variety of loan programs to businesses, including microloans, revolving loans, and capital access program loans. However, these loans can be difficult to qualify for and often require extensive paperwork and collateral.

Invoice factoring is often a better option for businesses than small business loans because it’s easier to qualify for, has a quicker approval process, and doesn’t require collateral. Invoice factoring also allows businesses to access immediate cash flow, which can help them manage their finances and grow their business.

Virginia’s business economy is diverse and thriving. Major industries in Virginia include technology, defense, and healthcare. Northern Virginia, particularly, is home to several technology companies, including Amazon Web Services, Microsoft, and Google. The state is also home to several military installations, including the Pentagon and Naval Station Norfolk.

The state also has tax incentives, grants, and factoring services for businesses to encourage growth and development. Virginia also has a highly skilled workforce, with a strong education system and access to top-tier universities.

Whether you’re in manufacturing, transportation, healthcare, or staffing, factoring companies in Virginia can help you achieve your business goals. 

To be sure you’re making an informed decision when choosing a factoring company, read through this Invoice Factoring Guide to learn more about invoice factoring and how to find the ideal factoring partner in Virginia.