Click Here for the Asset Based Inquiry Form
In short, factoring is a financial transaction in which a business sells its accounts receivable (its invoices) to a third party (called a factor) at a discount in exchange for immediate money with which to finance continued business.
In these uncertain financial times, you can understand the necessity of factoring, as the credit crunch has hit businesses of every size. And, as in any down cycle, there are certain people and business’ trying to take advantage, and do not have your best interest at heart. Look out for the scams!
Factoring has been around as long as commerce, but it is now becoming more popular, as banks tighten their belts and make it harder for small and medium business’ to borrow money.
Factoring is a simple method to increase the cash flow for your business. By allowing the factor to pay your invoices, your business has cash flow to meet payroll, buy inventory, or invest in research and development.
Factoring Parameters
Transaction Size- $100k- $3Million
Business Credit Type- Line of Credit
Advance Formula- Up to 80% of Accounts Receivables/ up to 50% of eligible inventory
** Accounts Receivables (Traditional Factoring)** Most castes, yearly sales must exceed $1 Million.
** Invoice Purchase ( Discount Factoring)** Most castes, yearly sales must exceed $500k.