Understanding
Invoice Factoring

You complete the job and invoice your customer as usual, submit the invoices you would like to fund, and Velocity takes it from there.

We will review and confirm your invoices, fund your advance, monitor your invoices, perform any needed collections, and process the payments from your customer. In addition to our dedicated, easy-to-get-hold-of account management, we also use top of the line factoring software that offers you an excellent online portal experience to stay connected with your account anytime, anywhere.

Our online portal provides real-time information, reports, payment images, collection notes, and status of your overall account as well as the individual invoices. Any activity on your account is available to you at the push of a button.  It’s important to us that we provide our clients with not only excellent service and communication but also access to accurate, transparent reporting.

Bring Cash Flows Forward

Invoice factoring allows companies to receive cash upfront as opposed to waiting up to 90+ days for invoices to be paid, allowing clients to focus on what really matters – growing their business

Finance Business Growth

With additional cash on hand, businesses can focus on growing their business by hiring additional employees, buying additional equipment and buying additional inventory

Bypass The Bank

Invoice factoring allows companies to avoid going to a bank which may have strict requirements for financing, impose stringent covenants, and add unwanted debt to a company’s balance sheet

Cut Administrative Duties

After Velocity purchases an invoice from its client, it has the ability to handle all administrative duties related to the invoice that would otherwise be the responsibility of the client

Industry Expertise

With 60+ years of industry experience in the oil and gas, staffing, manufacturing, and trucking industries and a management team that has collectively handled over $1B in invoicing, Velocity has the ability to provide flexible working capital solutions

Simple & Fast Funding

As Velocity’s name suggests, it performs with great speed, typically able to fund existing clients the same day and new clients in as little as 3 days

No Minumum Invoice Amount

Velocity does not have a minimum invoice requirement which allows it to serve a wider range of clients

Frequently Asked Questions

Are there any fees to apply?

No, there are no application fees.

How long does it take to get setup?

It typically takes between 3-5 business days for the initial underwriting and funding process. After that, on average, we fund within 24 hours of invoice receipt. In most cases, we fund same-day.

What can I expect during the application and funding process?

Below is an overview of Velocity’s process from beginning to end:

  • Receive completed application and AR aging for initial review
  • Provide proposal and complete underwriting
  • Our operations team will set up the new payment address and verify the invoices with your customer
  • You’ll receive the advance within 24 hours of verification 
  • We will monitor the invoices and manage collections so you can concentrate on growing your business. 
  • Your customer pays us and we return the rebate (amount not advanced less the factoring fees) to you.

What types of business can factor?

Many types of businesses can benefit from factoring. At Velocity, we have factored for a number of industries including oil & gas, staffing, and manufacturing just to name a few.

Do you work with start-up companies?

Yes! In fact, many start-up companies use factoring to generate the cash flow needed to establish and grow their business.

Is factoring a good a fit for my business?

Invoice factoring is a great fit for many companies.  If your company meets the following criteria, Velocity may be the perfect partner to meet your financial needs. However, this list may not cover all circumstances so please feel free to call us at 432-247-1888 for a FREE evaluation!

Factoring with Velocity may be a great solution to obtaining working capital if your company:

  • Provides goods or services to commercial customers
  • Is free of tax liens (or has a payment plan in place)
  • Has unpaid receivables that are not pledged elsewhere
  • Invoices customer upon completion of work or delivery of goods 
  • Can provide supporting documentation for the invoices (i.e. – approval signatures, field tickets, water/disposal tickets, bol’s, etc.)
  • Serves customers that have net terms ranging between 15-75 days, good communication and/or online systems, and good commercial credit 
  • Has average monthly sales of $50K to $5MM
  • Is looking to work with a factoring team that cares about you, your customers, and your business!

What if my personal credit isn’t very strong?

Don’t sweat! Although we do review personal credit, one of the great things about factoring is that we rely the most heavily on the credit-worthiness of your customers. If you work for quality companies that have good commercial credit, it’s unlikely your personal credit will affect our ability to fund.

Will Velocity communicate with my customer?

Throughout the relationship, Velocity may reach out to your customer to update the payment address on file, submit or verify invoices, and manage collections. With Velocity taking on some of invoice management duties, you’ll have more time to focus on building your company.  With that in mind, we also understand how important your customer relationship is to your business so it is always a top priority for our team that any communication with your customer is courteous and professional.

Do I have to factor all of my invoices?

No, you choose which accounts to factor. With no monthly minimums, you can factor as much or as little as you need on approved accounts.

Do you charge to review credit of my potential new customers?

No. We believe, whether you plan to factor them or not, it’s in everyone’s best interest for our clients to have good credit information available to them when making the decision to do business with a new customer.

What happens if I’m already factoring or receiving financing from another company?

We’re happy to help you review your current financing arrangement. If a buyout is appropriate, Velocity will work with your current finance company as well as your customers to ensure the smoothest transition possible for you.

Can I visit your office?

Absolutely! In fact, we’d love to visit with you in person, whether you are an existing or a potential customer. Since we are located in downtown Midland, we are easily accessible to all of our customers in West Texas and the surrounding area.

Schedule A Call With Us

Schedule Your Call With Us

Velocity Financial

400 West Illinois Ave.
Suite 1120
Midland, TX 79701
M-F 8am-5pm
5757 Woodway Drive
Suite 329
Houston, TX 77057