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Turn Unpaid Invoices into Working Capital

Factoring

Don’t sacrifice your company’s growth by waiting on one client to pay so you can get materials for your next order.

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Understanding

Factoring

Factoring gives you the money you need from accounts receivable before your clients pay.

This enables your business to take on larger clients faster and boost growth into the future.

Any company with accounts receivable can utilize factoring. Factoring entails selling your AR to a factoring firm (a “factor”) to get cash upfront. Then, the client that owes on the account pays the factor directly. The factor recovers their costs plus a small fee and sends the remaining payment to you.

Factoring lets you sell invoices, contracts, and purchase orders to get cash in as little as 24 hours. It takes the pressure off your business while allowing your clients the 30, 60, or 90-days to pay that they’re accustomed to. Talk to your broker about factoring today.

How to Effectively

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What happens when you want to bid on a new contract but don’t have the materials or labor to cover it?

You can choose to wait for your other clients to pay their invoices, but that could be weeks or months from now. You could take out a loan, reducing your credit score and throwing off your balance sheet.

Instead of waiting or borrowing, try selling your AR assets to get cash quickly. You can leverage your invoices, purchase orders, and contracts by factoring them. Group AR assets to get more money up front so you can bring in what you need to take on new orders. Since factoring is a sale rather than a loan, you can get the money for labor and materials without having to pay it back to a lender. Ask your broker how you can add this financial tool to your business’s financial toolset.

Funding Options

Staffing

Factoring is a versatile financial tool your business can use to meet staffing demands. Factoring can help your business onboard new staff ahead of the busy season so you can increase sales revenue. Use factoring to meet payroll demands when cash flow is tight or bump up your company’s staff incentives.
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Materials

Factoring gives you the cash you need now so you can buy materials for your next order. Use factoring to help your company take on bigger orders and encourage new clients to keep coming back. When you leverage your AR assets, you don’t have to wait on your current customers to pay.
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Supplies

Factoring is a fast way to get the supplies your business needs without having to wait on invoice payments to come in first. Get what you need to handle incoming orders, guide workflow, and boost production. Speak with a qualified broker to find out how factoring can work for your small business.
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Still Have Questions?

We’ve Got The Answers

Q. Is factoring a loan?
Factoring is the sale of accounts receivable assets, not a loan. Since you’re selling AR assets to a factor, you’re not required to pay back the funds unless your clients fail to pay. Factoring won’t impact your credit score or debt to income ratio.
Q. When is factoring not a good fit?
Not all businesses can utilize factoring. If your business doesn’t have accounts receivable to sell, consider a hard money or bridge loan instead. Ask a broker to show you more short-term working capital options.
Q. What’s the difference between factoring and invoice financing?
When you factor, you’re selling your outstanding invoices to a factoring company. The factoring company then collects payment from your clients. Invoice financing is a loan from a lender that is based on the value of your invoices. You’re then responsible for paying the funds back to the lender.
Q. How much does it cost to factor invoices?
While factoring fees vary from lender to lender, most factoring companies charge between 1%-3%. Be sure to ask about any additional fees or interest based on the days outstanding.

Factoring

Advantages

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  • Get cash before your clients pay their invoices. 
  • Group smaller invoices or clients. 
  • Boost cash flow without taking on more debt. 
  • Let someone else handle payment processing. 

What We Do

Why Clients Choose Us?

Clients choose us for our commitment to delivering personalized financial solutions that align with their business goals. Our team’s dedication to transparency, speed, and exceptional service ensures a seamless experience from application to funding.

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