Instant access to money through your receivables
Digital onboarding, includes agreements and signatures
Funds released within 24 hours of approval
Cash in on the benefits of invoice finance
Factoring, Invoice Finance, Cashflow Solutions and Business Loans
Staying on top of your supply chain and invoicing
Trusted by more than 50 independent agents and hundreds of businesses in Puerto Rico, Mexico, Dominican Republic, USA and Latin America.
Take control of your cash flow with invoice finance, and don’t wait for a customer to pay their invoice before you grow.
Why Introducers choose us to help raise business finance for their clients.
Invoice finance means that your clients are invoiced as usual under agreed standard terms. However, you’ll have access to those funds once invoicing has happened. In simple terms, you’re paid straight away, while Worcaps is paid in 30 – 90 days time. There’s no catch, clearly explained, competitive fees with the added benefit of less administrative work leaving you more time to get on with your main business task.
These days, factoring is one of the best ways in which businesses can avoid the problems associated with negative cashflow. Forget the constant phone calls and emails to your client’s accounts team and forget payments that are eventually made in 60 days or beyond.
Invoice financing through a Factor is the way forward for a modern business that’s looking to establish itself, develop or move forward on to the next level.
Based in Puerto Rico, Worcaps is a well-respected business finance company that offers an array of finance solutions to fit your business. From long-term business growth loans to flexible short-term arrangements to spread the cost of Self Assessment liabilities or Tax.
If you’re thinking about taking your business to the next stage, then now’s the time to start talking to us at Worcaps.
Businesses need cash flow to fulfill their daily tasks which include paying the staff and keeping the supply chain working properly. However, the problem with modern day businesses is that they often become reliant on the flow of cash from regular clients. With only a slight interruption to the supply chain, such as a client not paying on time, small businesses can have huge setbacks, especially if there isn’t enough cash in reserve. This is where WorCaps comes in and helps businesses to successfully overcome the cash flow dilemma. We can source invoice finance plans to suit your business.
Plan for tomorrow
You may be in a great cash flow position today but it’s difficult to be certain about tomorrow. The fact is that there are many reasons as to why cash flow issues are outside an individual business’s control. These include customers failing to make payments; banks changing your security rating or assessing an industry as more risky; and sudden or unexpected bills like tax.
At any point, your cash flow position might suffer from setbacks that are outside of your control. For this reason, it is important to plan ahead and move fast to protect your business. Here at Worcaps, we offer the possibility of setting up a standby invoice finance facility to protect your business from those unexpected setbacks.
A standby facility is Free to set up and you don’t pay unless you access the funds. Having a standby facility means that you can access lending in the fastest way possible because you’ve already completed all the paperwork. So you can rest easy in the knowledge that you can react quickly to unexpected cash flow setbacks, and keep your business operating while you plan your long-term strategy.
Invoice finance is a flexible short term funding tool that can give you fast access to cash when your business needs it. With invoice finance in your toolkit, you’re free to take control of your cash flow, and you don’t have to wait for a customer to pay their invoice before you take your business to the next level. Even if you don’t have an immediate need, you may benefit from setting up a standby facility to prepare your business for unexpected cash flow problems.
Who can benefit from invoice finance?
Here are some situations where invoice finance can really help:
- Managing day to day costs if your business finds itself short of cash.
- Dealing with frozen or reduced funding from the bank – invoice finance could give you time to find a long term solution without experiencing a cash flow crisis.
- Dealing with a change to your security rating from an existing finance provider.
- Seizing a growth opportunity when you don’t have the cash to make it happen.
- Bridging the gap between delivering goods and receiving payment: this can be especially important in industries like labor hire if you have to manage weekly pay cycles.
- Funding an internal project or opportunity.
- Dealing with cash flow fluctuations in a seasonal business.
- Providing funding if traditional lending facilities can’t help.
Cash in on the benefits of invoice finance
How invoice finance works
- You invoice your customers when you have delivered a product or service. Your customer then has a number of days to pay the invoice but your business needs the cash straight away. What do you do? Use Invoice Finance.
- With invoice finance you sell your unpaid invoice to a finance company, like Worcaps. The finance company then advances you a percentage of the invoice value – usually between 80 and 90%. When the invoice is due to be paid, your customer pays the finance company directly and they deduct their fee and then pay you the remainder of your balance.
- Depending on the finance company, you can choose to finance a single invoice or a group of invoices. This flexibility is great to allow you to match your finance to your needs exactly, ensuring you can finance your opportunities while avoiding the cost of unnecessary debt.
What are the benefits of invoice finance?
- Invoice finance is quick to set up and deliver.
- You are effectively borrowing money you’ve already earned, so you know when your customer pays their invoice your debt is cleared.
- Because the debtor works as security, the amount you borrow can be more flexible. You can choose to finance single or multiple invoices depending on your business needs.
- Your finance agreement only lasts until your customer pays your invoice.
Maintain customer relationships, and capitalize on growth opportunities.
Worcaps will pay your supplier up to 100% of the cost of producing and delivering the goods to your customer. When your customer receives the goods, you will invoice them for the fulfilled order and they will pay Worcaps directly.
- Purchase order financing provides immediate cash flow to businesses to fulfill customer orders.
- It’s a flexible funding option available to businesses of all sizes and financial standings.
- Helps businesses maintain customer relationships by fulfilling orders on time.
- Lower risk than traditional loans as it’s based on a specific purchase order or contract.
- Enables businesses to take on larger orders, leading to increased sales and growth opportunities.
Cash in on the benefits of Purchase Order Financing
Why choose Worcaps’ Cash Flow solution?
- Instant access to money through your receivables
- Digital onboarding (Digital agreements and signatures)
- Client Trust Account
- Funds released within 24 hours from approval
- No uncleared effects
- Simple pricing
Understanding factoring and what an invoice factoring company does
- Supply the goods: Supply your customers with goods or services and invoice your customers as normal.
- Your factoring company will handle the credit control: Your factoring company will release up to to 90% of the raised invoice value. Your customers will pay the factoring company directly and chase payment of the invoices on your behalf.
- You receive the money: Once the customer settles the invoice, the finance company will release the remaining invoice amount to you minus the relevant fees.
Generally speaking, invoice factoring facilities are best suited to companies that sell to other businesses on credit terms.
Invoice factoring can be used by any industry that sells products or services to another company but in particular industries that suffer cash flow problems due to the nature of their business.
Industries that experience high production costs, seasonal sales slow downs, slow paying clients, unexpected growth and other unpredictable costs affecting their day to day operational cash flow use factoring as a non debt solution to their cash flow problems.
These industries will include (but are not limited to) manufacturing, construction and service industries, trucking companies and staffing agencies.
Available cash flow could help your business to:
- Expand your operations
- Invest in stock, machinery or equipment
- Employ new members of staff
- Fix long-standing issues with cash flow
Advantages of invoice factoring:
- Benefit from improved cash flow.
- Enjoy better working capital, which means more money for growth projects, staff training or stock purchases.
- Be able to move away from more restrictive forms of finance, like small business loans or overdrafts.
- Benefit from your chosen finance provider’s in-house credit control processes.
- Be able to focus on running your business, instead of chasing clients for payment.
Disadvantages of invoice factoring:
There are some disadvantages of invoice factoring too – your clients will be informed that you’re using an invoice factoring service, and your factor will contact them to collect on factored invoices which means that:
- The image of your company may be affected, particularly if your clients assume that you are not established enough to oversee your own credit control.
- There are some companies that are not willing or able to change their payment instructions directly to their factor. In such cases, we setup an alternative process, which may take a little longer.
- Flexibility – your funding line increases at the same rate as your turnover, meaning that you don’t need to renegotiate terms.
- Improved cash flow – release money tied up in unpaid invoices and boost your cash flow.
- Bargaining power – Invoice discounting can help you to negotiate better terms with your suppliers.
- Faster growth – grow your business at a much faster rate due to the flexible funding line.
- Award-winning service – benefit from our award-winning client service.
A factoring company buys a business’ unpaid invoices in return for a factoring fee which is deducted once the full payment has been collected from the customer. A factoring company enables businesses to release cash by purchasing their invoices at a discount.
Most factoring companies are recourse arrangements, which means that you will be responsible for any unrecoverable invoices, as Worcaps is not a debt collection company.
Factoring is when a company purchases the accounts receivable of another. It provides working capital to the first party while they continue trading, and can be used to reduce debt, or enable growth.
Invoice factoring is when a business sells its invoice to a third-party company. It’s a form of invoice finance and will give your business an effective way to improve its cashflow position.
The invoice factoring provider provides the credit control service to recover payment of the unpaid invoice. Invoice factoring companies allow you to release cash from your unpaid invoices quicker than having to wait between 30 to 90 days – and sometimes up to 120 days – for your customers to pay you.
As your acting invoice factoring provider, we handle your credit control, allowing you to concentrate on other areas of the business instead of chasing up late payments.
A factor is an intermediary between the company and its customers. The factor effectively buys an invoice at a discount and then collects payment from the customer based on the full value of the invoice. This business relationship allows companies to obtain capital they need to operate and expand, whilst also ensuring any suppliers are paid promptly.
Quick takeaways if you’re in a hurry
- If you invoice your customers you could be using invoice finance.
- Invoice finance is flexible to a wide range of needs and situations, and can be adapted for both small and large cash flow requirements.
- Keep debtors out of any security agreements for existing finance arrangements and you should be able to boost your cash flow with invoice financing.