Factoring

Accounts Receivable Financing (Factoring)

Accounts Receivable Financing or Factoring is an ideal product for companies undergoing growth or that require more working capital than available through a traditional lender. Unlike a line of credit or term loan, Factoring has no set limit or term period. The funds available are primarily based on the client’s outstanding invoices. As sales increase, so do the funds available to the client.

The credit decision for A/R Financing is primarily based on the strength of the client’s customer. As such, clients with limited credit strength are not limited in their borrowing potential. In most cases, lender may advance 75-85% of the value of a client’s A/R.

Our unique financing products can help your company take full advantage of business opportunities that you may otherwise have to turn down due to a lack of cash flow or working capital. If your company has sales between $20,000 and $5 Million per month, call us today!

A Comparison Between Factoring and Other Types of Financing

FUNDING COMPARISON	Leasing	Going Public	Venture Capital	Bank Loan	Private Investor	Gov’t Programs	Factoring
Days to fund	15-30	120-270	90-180	Varies	15-90	60-180	4-10
Approval based on financials	Yes	Yes	Yes	Yes	Yes	Yes	No
Funding available tied to sales	No	No	No	No	No	No	Yes
Give up equity	No	Yes	Yes	No	Yes	No	No
Give up control	No	Some- times	Yes	No	Some- times	Some- times	No
Require profitability	Yes	No	Usually	Usually	Usually	Usually	No
Funding limited by asset value	Yes	No	No	Yes	Some- times	Yes	No
Available if taxes are outstanding	Yes	No	Some- times	No	No	No	Yes