CPG financing refers to financial solutions tailored for the consumer packaged goods industry. It often includes specialized options like invoice factoring to expedite cash availability.

Any service provider that issues invoices to commercial clients on credit terms. This includes accounting and bookkeeping services, advertising and marketing agencies, architectural and design services, consulting services, event planning and management, legal services, real estate services, travel and tourism agencies, and more!The main difference between CPG invoice factoring and traditional loans is that the former doesn’t involve borrowing money. Rather, it’s converting your outstanding invoices (money you’ve earned) into cash for a small fee.

This also means that with consumer packaged goods invoice factoring, you won’t have to worry about regular payments or compounding interests. Factoring companies also have faster approval and fewer requirements than traditional loan providers.

The average rate for invoice factoring is between 1% to 5% of the invoice amount.

Most factoring companies charge a factoring fee between 1% to 5% of the invoice value. Some companies may also charge additional late payment fees or service fees. However, the exact value will depend on your agreement with the invoice factoring company.

If a customer does not pay a factored invoice, what happens depends on the factoring agreement. In a recourse factoring agreement, you will be asked to assume financial responsibility for every unpaid invoice and have to buy them back. In a non-recourse factoring agreement, the factoring company absorbs the loss.