Factoring
Factoring
Lending Overview
You work hard to deliver on time, but that does not always mean you get rewarded right away. If your business uses accounts receivable to get paid, you might be waiting months to see a return. Meanwhile, you still have expenses to cover. Factoring eliminates the waiting period by giving you cash on your AR assets right away. Sell invoices, purchase orders, contracts, and more to a factoring firm (a.k.a. factor) now to access immediate capital. Then, the factor collects payment from your customers directly when they are ready to pay. You can move forward knowing you have what you need to cover expenses and your customers still get time to satisfy their accounts. You do not have to pay back the factor unless your customer wants a return or refund. Factor one large account or bundle several smaller invoices. Factoring is a great option if your credit score stops you from getting a loan since approval is based on your customers, not your credit history. Ask us for details!
How to Effectively Apply Funds
Transform your cash flow dynamics by leveraging factoring to instantly access the value of your accounts receivable, fostering rapid growth and operational agility.
Do you give your customers 30, 60, or 90 days to pay after delivery? If your progress is being held back because you are waiting on payment to move forward, accelerate your timeline with factoring. Factors buy accounts receivable like invoices, purchase orders, and contracts. You get a percentage of the AR’s value right away. When your customer is ready to pay, the factor recovers its costs and sends the remaining payment to you. Factoring gives you the ability to take on new and bigger orders because you can bring in materials and supplies without waiting. It is easy to get approved. We will show you how!
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OUR SERVICES
Customized to Meet Your Unique Goals
Staffing
The people who work hard to make your business a success can be the most important part of your company. But they will not stick around if they do not get paid. Use factoring to cover payroll expenses and retain your business’s top talent and valuable employee base. Easy AR financing makes it happen!
Agriculture
If your business depends on the growing cycle to stay successful, your timing has to be just right. When you are waiting months to get paid, so you can invest in seeds, plants, equipment, fuel, and labor, you are not taking full advantage of the season. Factoring helps you get in sync to maximize your yield.
Wholesale
When you deal in bulk, an empty warehouse means lost opportunity. But if you are waiting weeks for payment on your last delivery, you could be unable to restock goods on hand. Factoring lets you bring in supplies, materials, and inventory so you do not have to press pause on progress.
Advantages
Unlock immediate cash flow and expand your business opportunities with factoring, providing a quick, efficient solution to finance your operations without the wait.
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Easy to Qualify
Low-Cost Financing
Low Credit Requirements
FAQ’s
Got Questions? We Got Answers!
Q. Is invoice factoring a loan?
No, factoring is not a debt on your balance sheet. It is the sale of an accounts receivable asset. You do not have to pay the funds back unless your customer fails to pay on their account.
Q. What if my customer does not pay their invoice?
If you have factored an invoice and your customer requests a return or refund, you will need to repay funds to the factor. Terms vary by factor, so make sure to cover this information with your broker before you apply.
Q. Can I use factoring if I have bad credit?
Yes, factoring is a great way to get an advance on your payments without relying on your credit score. Since it is your customer who pays back the factor, factoring companies are more interested in their credit and payment history than yours.
Q. When is factoring not right for my business?
Factoring is a great tool, but it is not for everyone. If your business does not work with accounts receivable assets, you will not be able to take advantage of factoring. However, there are many ways to get working capital financing. Ask a broker to show you more options.
