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what is invoice factoring even better what is invoice financing and what's the difference between these two well that's exactly what i'm going to decode during this training during this trading you're going to learn about two really powerful ways to get money to grow your business one of which is one of the most common ways that people collateralize sba loans along the way i'm going to give you my best tips and tactics to get approved for these kind of financing and many others and i'm going to give you the best tips to be able to get the best terms and the most amount of money if you stick around to the end of this training i'm even get you access to our 27 ways 2027 ways to get funding for your business guide that outlines a lot of cool ways to get money to start and grow your business we've got a lot to cover so let's dive in [Music] so there's two really cool kinds of financing you should know about one is called invoice factoring and one is called invoice financing and believe it or not these two are very different from each other although a lot of overnight gurus in the space might not actually break down the difference between the two so let's dive in let's decode this so when we talk about invoice factoring we're ultimately basically talking about selling invoices for a discounted rate this is what's called factoring so for example i have customers that pay me on terms and what i do is i sell those to a factoring company the factoring company instead of waiting for me to get paid like i normally would gives me up to 90 of that money in 24 hours once i'm actually through their approval process so now i can let my customers pay me over five six seven nine months or longer and i get the majority of my money right away now with factoring one of the other huge benefits is is that the lender actually does the collecting of the invoice and payment for you so instead of you worrying about your customers paying you over time and you delivering services now and then having to chase them for payment worry about getting paid the lender does all of that for you the lender gives you upwards of 90 of what you're supposed to be paid now instead of waiting months and they're the one that collect the payment for you so one of the best examples i can give you is a company called johnson and johnson you're probably familiar with them right one of the biggest retail companies in the world johnson johnson is one of the biggest users of invoice factoring but again a lot of the largest publicly owned companies and privately owned companies use invoice factoring to grow as well and another kind of funding is called invoice financing now invoice financing is definitely different than factoring for first first of all you're actually selling the actual invoices to somebody else you're the one collecting from your customers you're not actually having somebody do that on your behalf you're basically getting like a line of credit against the invoices that you actually have so you're able to use the fact that you have these outstanding invoices as collateral to get a line of credit and then you're able to use that to fund your business instead of moving all of those invoices somewhere else like you are within voice factoring so which is the best kind of financing for you well look factoring works really well if you're dealing with people with challenged credit or people that have a history of not paying their bill you could typically get it as a startup business or sometimes lenders want you to have a year in business so even being newer in business this can definitely help you and it frees up a lot of time in your business as well because you're not constantly chasing customers payments invoice financing is a better option when you want lower fees and you really want a workable line of credit so this actually helps you when you're a little bit more established in business but again you're not selling your invoices you're still responsible for collecting so if your customers typically pay you just fine well then you might want to lean towards this option because this option gives you that line of credit which gives you a lot greater borrowing capacity but these are only two of many different ways to get funding for your business so if you really want to get financing for your business make sure you check out the links in the description of this video there we're going to give you access to our finance blueprint qualifier and this is going to be where you can go right away and get approved for funding by talking to our finance team our finance team works with over 30 different core funding products and over a thousand different lenders so no matter what your risk may be startup bad credit been denied before there's a good possibility that we're able to still help you get approved also in the link in the description you're able to access our guide with 27 ways to be able to get funding for your business today we talked about two there's a lot of other ways you can get the money you need to fund your business and this guide will give you everything you need to be successful and also don't forget to check out the link and get with our team for your free finance assessment on this assessment will actually tell you all the funding you can qualify for right now we'll help you get your business credit reports at no cost and will help make sure your business is set upwards fundable where lenders and credit insurers want to give you money did you get value from this training if so make sure you like and subscribe and keep your eye out for the next training where we talk about more cool ways to get the money you need to start and grow your business [Music] you