How much money can I obtain through factoring? We typically advance you 80-90% of your receivables immediately, and the balance (less our fees) when invoices are paid.
Example: if you have $100,000 in accounts receivable on your books, you could immediately receive up to $90,000 in additional working capital. The balance due to you of $10,000 (less our fees) will be paid to you when your customer pays the invoice. If your sales increase, so will your receivables-and so will the amount of capital available to you on an ongoing basis.
Factoring may be the best way of financing sales, because the amount of available capital grows in direct proportion with sales success.
Back to Top
Does a bank loan make more sense for my small business than factoring? Probably not. Banks often have restrictive lending requirements relating to cash flow, profitability, equity and years in business that limit them from making loans to many small to mid-sized businesses. Factoring companies are not in the lending business; we purchase accounts receivable form credit-worthy customers. The decision to purchase your invoices is influenced primarily by the quality of your customer base and their financial stability-not the financial fundamentals of your company. Back to Top
What if my company has a bankruptcy, bad credit, poor financials or other derogatory information or history? In general, these are not deal-breakers, as funding decisions are based on the credit-worthiness of your customers-not on your credit. Back to Top
