Factoring

Factoring is the fastest, most flexible means for a business to finance growth.  Advances are made to your business against outstanding invoices for completed work thereby improving your cash flow and working capital.   By bringing more funds into your business you can cover current expenses and take on more and larger projects.

As long as the invoices are to a creditworthy business or government agency, factoring is possible. Your business can be new or your credit can be weak, you are eligible for factoring if your invoices are strong. Recently we've seen a lot of activity from businesses that are established, need financing, but banks just aren't able to help them.

The businesses that use factoring have good profit margins and are able to achieve profits for projects they would not be able to finance otherwise. To see examples of industries using factoring please see our Industries Section.

Our factoring clients typically are:

• Experiencing rapid growth and/or taking on large orders
• Have cash flow needs to meet payroll expenses
• Need help making supplier payments
• Starting up a new business
• Have credit issues, tax liens, bankruptcies, etc.

Monthly amounts to be factored can be as low as $5,000 and as much as millions of $'s. There are many ways to structure the financing - all invoices can be factored or you can selectively pick and choose when and which ones you would like to factor. We work closely with our clients to determine their financing needs to give them the best possible solution at the lowest cost.

Selective Factoring.  With our selective factoring solutions you pick which customers that you want to factor invoices to and which of the invoices to them that you want to factor.  You do not have to factor all customers or all invoices; there is no minimum dollar amount and no required time frame for factoring.  This is an excellent choice giving maximum flexibility if you need funds for a short period of time, or you are just getting started and aren't sure of your funding needs, or if you have periodic cash flow needs but not a predictable monthly amount.

Comprehensive Factoring.  All invoices to most if not all of your clients are factored for a contracted period of time with set funding minimums.  This is the best choice if you have predictable cash flow needs over a period of time.  We offer comprehensive factoring solutions with rates as low as .75%/month.

With factoring you are advanced 70-90+% (depending on your type of industry) of the value of the invoice within 24 hours with the remaining balance paid to you (less a small service fee) once we receive payment from your customer.

Working with a factor can mean a reduction in collection days and improved cash flow thereby providing valuable management time for focusing on growing your business.  At no cost, the factor will provide credit checking services to make sure your customers and potential customers meet credit standards.

With factoring, you do not have to give up equity in your business or pledge personal assets as collateral. Factoring is not a loan so you do not incur debt and have monthly payments.  Factoring often helps strengthen both your business and personal credit.

For more information on factoring please see our News & Information Section. 

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