how does far west capital fund your business?

Or: What’s factoring, and should you use it?

are you…

…invoicing your customers and clients?

…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.