Unlock Liquidity with Custom Factoring Solutions

Factoring

Doesn’t add debt to you balance sheet

Flexible terms

Payments approved fast

Factors handle collections

Explore Factoring Options to Boost Your Cash Flow

Lending Overview

You work hard to deliver what your customers need on time. But if you’re invoicing, you have to wait and hope to get paid on time. While invoicing can improve customer satisfaction and brand awareness, it can put stress on your cash flow. While you wait to get paid, your creditors won’t.

Factoring accelerates cash flow while keeping your customers happy. If you work with invoices, purchase orders, or contracts, you can sell these assets to a factoring company. The company will give you cash based on the value of the account right away. When your customer is ready to pay, payment goes directly to the factor. After a small fee, any remaining payment gets forwarded to you.

Factoring helps you manage your AR task list and meet your company’s credit obligations on time, avoiding late fees and service interruptions. Factor one large invoice, bundle several smaller invoices, or sell an entire contract. Ask your broker for information.

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Leveraging Factoring for Optimal Cash Management

How to Effectively
Apply Funds

Factoring is a fast and easy way to get an advance on the revenue your customers owe. It’s not a debt, but a sale of assets. There’s no need to pay back the cash unless your customer fails to pay. Another great feature of factoring is that it’s not your credit that decides if you get approved, it’s your customers’. This makes factoring a smart choice for newer companies that haven’t established credit yet, but have a reliable customer base. Factoring fees are typically 3% or less, making it a low-cost option. Use factoring when you need to get a jump on large orders. Restock supplies and materials sooner so you can deliver faster and impress new customers. Ask your broker how factoring can benefit your business today.

Immediate Cash Flow Solutions Tailored to Your Needs

Comprehensive Factoring Services

Wholesale

Billing wholesale customers typically involves collective invoicing, which saves on effort and paperwork. To restock products faster, wholesalers use factoring to receive an advance on their invoices and boost cash flow. Factoring works for collective invoices as well as single-order invoicing. Talk to a broker to find out how.

Rental

Businesses that rent space, equipment, and vehicles use recurring invoicing to communicate with their customers. Because payments come in regularly each month, it’s easier for the business to plan. But when the unexpected happens and the business needs cash flow ahead of schedule, factoring comes to the rescue.

Subscription

Unlike other forms of invoicing, subscription invoicing happens before a customer receives their purchase. But revenue from subscriptions is still restricted to a monthly, quarterly, or annual schedule. When subscription providers need working capital ahead of the next billing cycle, they turn to factoring to make it happen.

Our Expertise

FAQ

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Q. How many invoices can I factor at once?
While each factoring company can set its own limits, you can typically factor all of your invoices for one client. If approved, you may factor all of your accounts receivable and lighten the load on your accounting team.
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Q. How does contract factoring work?
Factoring companies may offer volume discounts in the form of contract factoring. Contract factoring is when you agree to sell all invoices from a client with the factoring company. Because you’re agreeing to do business with them over an extended time frame, most factors offer lower fees and other costs.
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Q. What should I look for in a factoring agreement?
When you use a broker, you can be sure you’re dealing with a reliable factoring company. The broker will help you review the factoring agreement to make sure it meets your needs and help you understand your obligations. Make sure you pay close attention to fees, deadlines, and expectations. Also understand what procedures are in place in case your customer doesn’t pay their account.
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Q. How do factoring companies get paid?
Factoring companies charge a fee for their services, in addition to interest which may be structured in tiers. Most factoring fees are low, just 1-3% of the total amount financed. Factoring multiple invoices at once can earn you a discount on factoring rates.