We understand how the cost of supplies purchased from vendors, office rent, vehicle payments, and payroll for employees can add up at the end of each month. On top of that, insurance companies and glass claim intermediaries can take 30, 45, sometimes 60 days or longer, creating a problematic cash flow shortage.
To remedy this, we at Lightning Capital offer invoice factoring as a solution. Invoice factoring is the purchase of a shop owner’s invoices by a factor, a company that specializes in the purchase of accounts receivable. To think about it another way, shop owners sell their invoices to a factor at a discounted rate. This rate varies from company to company but is usually between 2-5%. The sale of invoices provides auto glass companies with immediate, useable capital, which allows the company to increase and maintain a steady cash flow.