Factoring is an easy way to cash in the value of your accounts receivable assets and cut the time it takes from invoice to payday. If your business has invoices, purchase orders, and contracts waiting for payment, factoring lets you sell them for cash.
Factoring
Factoring is an easy way to cash in the value of your accounts receivable assets and cut the time it takes from invoice to payday. If your business has invoices, purchase orders, and contracts waiting for payment, factoring lets you sell them for cash.
Understanding
Factoring
You get a percentage of the account value right away and the factoring company collects payment directly from the client. Any funds leftover go to your business, minus a small fee. If you sell a purchase order worth $100,000 at 80%, the factor gives you $80,000 right away. When your customer pays on the account, the factor recovers their $80,000. Then, they send you the remaining $20,000 minus their fee. You don’t need to pay the factor anything unless your client refuses to satisfy the invoice. You can factor one large account or several smaller accounts. Factoring is a great option for businesses with low credit scores. Let us show you how to harness the power of your accounts receivable today.
How to
Effectively Apply Funds
It’s hard to grow your business when you rely on payment from one invoice before you can buy materials and supplies for the next order. With factoring, you don’t have to wait. Get the cash you need right away so you can take on bigger orders and more customers. Even if you offer your customers up to 90 days to pay, you can still meet your utility, rent, and payroll needs on time. Factoring is not a loan, so you don’t have to worry about your credit score. Financing is available for any business that has AR assets, even if it doesn’t meet the credit requirements of traditional lenders. Beef up your inventory ahead of the big sales season, bid on an upcoming municipal contract, or tackle unexpected bills when you get fast cash from factoring.
Our Services
Invoices
It’s customary to offer customers 30, 60, or even 90 days to pay an invoice, depending on the industry you work in. But this might not be a schedule your creditors can get behind. Instead of stalling, sell your invoices to a factor and get cash now. Ask us for details.
Purchase Orders
If filling large orders is a challenge for your business, cash in your purchase orders to get paid early. Then, you can bring in the supplies and materials you need to satisfy your customers. Less expensive and time-consuming than a loan, factoring gets your business what it needs now.
Contracts
Contract factoring involves selling all invoices for one client to a factoring firm in exchange for cash. Offload your AR processing when you factor your client contracts and get a discounted rate for financing. Contract factoring can save you money over factoring invoice-by-invoice when you have reliable customers.
Ready to start your financing journey?
Our pre-application process is simple. Your information helps us position you for financing so we can provide an overview and some initial options on our first call. Click the button below, fill out the simple form (no hard credit pull required) and we will connect with you soon!
F.A.Q’s
Get Informed
How much does factoring cost?
Factoring fees are typically between 3% and 5%, although many factoring companies charge maintenance and processing fees. Ask your broker to show you a complete breakdown of your costs before entering a factoring agreement.
When is factoring not a good fit?
Factoring only works if you have AR assets to sell. If you don’t work with invoices, purchase orders, or similar types of AR, consider a line of credit or a working capital loan instead of factoring. Let us show you flexible financing options.
Can I factor more than one invoice at a time?
How much you can factor depends on the company you work with for financing. Most allow you to bundle invoices from the same client or different clients depending on your capital needs. You can also agree to factor successive invoices with the same client. Ask your broker for details.
What is non-recourse factoring?
In most cases, the company selling its AR must pay back the factoring company if the customer doesn’t satisfy their account. With Non-recourse factoring, the factor must absorb the losses.