Get immediate working capital and smooth out cash flow with factoring, a straightforward financial solution that advances funds against your outstanding receivables, empowering your business to thrive without delay.
Lending Overview
When business expenses are coming due, there’s no time to waste. If a business is waiting on accounts receivable, it may not come in time. Waiting restricts cash flow and creates tension for any business relying on invoices, purchase orders, and contracts to get paid. Factoring provides a loan-free solution, allowing businesses to bring in working capital ahead of their customers’ payments. Factoring is the sale of accounts receivable assets, not a loan. Companies sell these assets to a factoring company, which provides cash upfront. When the business’s customers are ready to pay, they pay the factor directly, eliminating the company’s need to process payments or wait around. One way to think of factoring is like a cash advance but with low fees and flexible options. Businesses can factor in large invoices, combine smaller accounts, or factor in an entire contract. The business’s credit isn’t important, just the creditworthiness of its customers. Find out more when you speak with a broker.
Smart Strategies
How to Effectively Apply Funds
When you need inventory for incoming orders, a boost of capital for upcoming expenses, or materials for a big project, factoring is here to help. Factoring provides working capital quickly when you have AR assets to sell. You don’t have to pay back the factoring company unless your customer fails to pay their bill. That means you get the money your business needs now while offloading your AR tasks. Many businesses use factoring to bid on larger jobs for bigger customers. Factoring gives them the funding they need to get supplies and materials for the next order without waiting 30, 60, or even 90 days for their last customer to pay. Ask your broker for creative ways your business can use factoring.
Advantages of
Cash available in hours, not days or weeks
The factor collects payments from your customers
You don’t need good credit to qualify
Factoring won’t affect your credit score
Our Values
We are dedicated to serving each client at the highest level.
Integrity
Innovation
Trust
Tailored Lending Solutions
Accelerated Cash Flow Solutions with Factoring
Fast
Your business can access cash in a matter of few hours as long as you have unpaid invoices, purchase orders, or contracts to sell. Move ahead faster and let the factor handle the rest. Ask your broker how to get the most value for your AR assets today.
Convenient
Access payments for your company’s AR easily through online platforms, ACH transfers, and wire transfers. You can choose which accounts to factor and how often, making factoring a versatile working capital solution. Find out what factoring can do for your business when you speak with our reliable brokers.
Reliable
We work with proven, trustworthy factoring companies that have decades of experience factoring receivables for businesses. You get immediate working capital with no loan obligations. Not all factoring companies are created equal, so make sure you’re getting the most value for your AR assets by working with our qualified brokerage team.
FAQ
Frequently
asked questions
Q. Do I have to pay back the factoring company?
When you choose no recourse factoring, the answer is generally, no. Under normal conditions, you won’t have to pay the factoring company back. Factoring is a sale of assets, not a loan. However, if your customer requests a refund, a return, or is delinquent on their account, you will have to compensate the factoring company. Sometimes choosing a recourse factoring agreement provides benefits in other areas of the agreement. It all comes down to the type of agreement you are most comfortable with.
Q. How much does factoring cost?
Factoring companies charge a fee for their services. These fees are typically between 3% and 5%. However, you should be aware of any interest tiers, additional fees or special conditions in your factoring agreement. Our brokers are available to clarify any questions you might have.
Q. Will invoice factoring affect my credit?
In most cases, factoring won’t affect your credit score. Factoring is not a loan, so it won’t affect your business’s debt-to-income ratio. It’s also not reported to credit bureaus. For a better understanding of how factoring can help your business get cash without hurting its credit, speak with a qualified broker.
Q. What are the disadvantages of factoring?
The biggest disadvantage of factoring is that if your business doesn’t have accounts receivable assets to sell, you can’t use factoring. Some factors require an ongoing agreement with a contract break fee. Aside from that, some companies may run into trouble if their customer refuses to pay their account. In that case, talk to a broker about the factor’s repayment terms and conditions.
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