Factoring
Factoring provides working capital to clients to support rapid growth and seasonality. Factoring may
often provide inventory loans, equipment financing and real estate loans to clients in conjunction with a
factoring relationship. Traditional factoring allows the client to immediately borrow money against their sales
while, at the same time, allowing their customers the normal terms of sale.
How quick is the process for factoring invoices?
Immediate cash available within 2 weeks. Just fill out a short application. You receive up to 90% of the
invoices that are submitted and accepted. Plus you will receive another check for the remainder less fees
when the invoices get paid.
How are rates determined?
There are several variables being considered which include, trends in customer's payments, credit strength,
your sales volume, total value of invoices and the current trend of the industry you participate in.
Do I have to factor all my invoices?
Not necessarily. It would be cost effective to factor customer's accounts who pay regularly within 30 days.
Can new businessess (start-up) and with no credit history qualify?
Yes. Your customers credit worthiness is considered more than your company since they are the one who pays the invoice.
Many companies in the early stages have used a Factoring service. Once they become established they are able to
obtain better terms from a banking institution.
Is there a minimum amount I can factor?
NO. A few Factors have minimum amounts of $50,000 but, there are a plethora of factors for
every situation that have no minimums. Finding one that will be a good relationship with you is more important.
Is collateral required?
NO. Invoices value and customers ability to pay are considered.
Am I committed to a long term contract?
Some Factors have 6 month minimum contracts while others don't. Finding one that will be a good fit that can
work with you and develop a program to meet your needs is more important.
Contact Us for a free consultation.