Businesses often need more cash than they have on hand. It may be for an emergency, a fleeting opportunity or sometimes, just meeting payroll. That’s where factoring can help.
Our factoring process is simple. A business sells its invoices or accounts receivable to us. We advance most of the amount invoiced – typically 80% to 90% – to the business, then we collect their payments for them. Once the bill is paid in full, we remit the balance to the client, minus a transaction fee called the factoring fee.
Even though factoring is more common in the business world today, factoring can be more expensive than traditional bank financing. Companies that can get bank financing are naturally not a good fit for factoring services.
However, companies that cannot obtain bank financing, factoring can provide the cash needed to fuel their enterprise with the most competitive rates available.
Our factoring services are designed to be a temporary fix, not a long-term solution. It is our goal to position our clients to improve their businesses to the point where they will qualify for traditional bank financing.