When Should I Consider a Factoring Relationship?

Factoring is different from traditional bank loan because you do not go into debt with the Factor.  We purchase your receivables which removes them from the asset side of your balance sheet, replacing them with a more liquid asset, cash.

You receive up to 90% of the invoice immediately and the remainder upon payment by your customer minus our modest discount (fee).

This type of funding relationship works with companies that either (a) have poor credit; (b)  have not established enough credit; (c)  are growing quickly; or (d) simply do not fit the narrow criteria most banks require for a loan.

Factoring allows companies to gain more funding as their business grows i.e. it is scaleable, unlike a bank line of credit.  The idea is to build your business to the point where you can eventually graduate to a traditional bank line of credit or an Asset Based Lending arrangement.

The companies we lend to are traditionally higher-risk clients.  Because of the way this financial product is structured, risk is usually sufficiently dispersed to make this form of funding viable for you and for us.

Because of greater risks and administrative costs, our products carry a higher expense then funded loans.   However, increased flexibility, lower up-front fees and speed of funding can make our products very competitive for short-term and medium-term needs.   And remember, success with our products helps pave the way for you to “graduate” and obtain permanent financing in a shorter period of time than otherwise might be required.   This can actually save you money in the long term and allow you to grow, producing real returns on investment that otherwise would not be attainable.