…often waiting on customers to pay outstanding invoices?
…trying to make your payroll match your incoming revenue?
… suffering from seasonal cash flow challenges?
… making a product, and need to finance a large purchase order?
If you answered “yes” to all or most of the above, factoring – also known as “accounts receivable financing” is probably for you.
here’s how it works.
You provide a service or product to your client.
You’ll invoice your customer as usual, and send us a copy.
Instead of paying you directly, your client sends the amount owed to our team for processing – but that may take 30 days or more.
Instead of waiting for your client to pay, we send you cash the day you submit your invoice (minus a small fee) via direct deposit to your bank account.
With cash on hand, our clients can then…
Pay employees on time
Fund equipment purchases
Expand their facilities
Add a new product line
but is it worth it?
One client of ours needed to make more briefcases.
They’d sold a big order, and they needed $1,000,000
to buy more materials to make lots more briefcases.
They could…
1. Find an investor and sell 25% of their equity
2. Come to us with their sold purchase orders
With $1,000,000 funded against their existing purchase orders,
they were able to grow to an annual revenue of
$5,000,000.
What else should I know about factoring?
It’s not a loan.
Instead, factoring simply purchases your receivables at a small discount. You’ll never be put in a situation where you can’t pay off debt.
It works best in a long-term relationship.
Beware of “easy money” – if you’re considering factoring, it helps to have a partner who understands your long term goals, your history, and your growth needs.
It’s easier to get approved.
Bankruptcies and tax liens can be a big problem with a traditional bank; for us, they’re just one part of the picture. Many businesses come to us with issues; we look for the potential in every deal we fund.
what else do you want to know?
Drop us a quick note here and a team member will get you an answer ASAP.
