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Factoring

Turn your accounts receivable into instant cash.

Aged accounts receivable can create an unfortunate cash crunch for some businesses. Slow-paying customer problems can be easily remedied through factoring your accounts receivable. As an acceptable tool for A/R acceleration, invoice factoring frees-up working capital available for business growth and expansion. No longer does your business need to wait 30 to 90 days for receipt of payment. The process is simple: your A/R invoices are purchased at a small discount for upfront cash.

As a financing option, the benefits to invoice factoring are numerous. Because factoring is not a loan, no debt repayment is required. In addition, factoring rates provide a low risk to the borrower because the invoice itself and credit of the customer involved is used as collateral. This lower risk means borrowers pay much lower rates–some as low as 0.49% per invoice. Credit approvals are often more rapid and advance rates on factoring can be as high as 90 to 100% of total invoice value. Here are some of the specific metrics used in determining your company’s individual factoring rate:

  • Your customers’ credit profile
  • Customers’ payment trends
  • Overall risk profile of your customers
  • Your contract duration
  • Factoring volumes
  • Account servicing overhead

Your factoring rate will be determined by a somewhat complex mix of sales volumes and invoiced customer credit worthiness. Several other proprietary internal and external factors are considered in assessing factoring rates with your business.

  • Have you failed to offer discounts to your customers for paying early on invoices?
  • Do you lack resources to collect on accounts receivable more quickly?
  • Have you received a large purchase order (P.O.) from a customer, but lack the funds to procure or produce your product?
  • Does your bank or credit union require real estate collateral to ensure access to working capital financing of your accounts receivable?
  • Do you operate a business that provides products or services to other corporations mainly through purchase orders (P.O.s)?

If you successfully answered “yes” to any of the aforementioned questions, you’re most likely an excellent candidate for our factoring services.

We measure our factoring success by our clients’ ability to “grow out” of the need for our services.

Whether you require invoice factoring as a short term fix or a more permanent financing option, remember we’re always here to help. Getting your account activated is quick and painless and precludes any application fees. Set yourself free from cash flow constraints with P.0. financing and invoice factoring.