Factoring
Factoring, also known as Accounts Receivable Financing, is the real-time exchange of your receivables for cash.
Factoring is a good option for business owners who may run into cash-flow management issues due to seasonality, logistical errors, damaged inventory, and to help grow your product offerings.
Funding Criteria
Fico Score
Funding Amount
Term Length
Time in Business
Time to Fund
550+
$ 3,000 - $ 5,000,000
Not Applicable
3 Months +
As Little as 24 Hours
Personalized approach
The lender will evaluate your business to determine the percent of outstanding receivables they are willing to provide. To calculate the percent of receivables that a funding company is willing to advance, the lender will consider such points:
-
your business size
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the quality of the outstanding receivables
-
the likelihood of speedy repayment
How does it work?
1
An advance is provided based on the total value of outstanding invoices being factored
2
You will receive between 50-90% of the total value upfront
3
Once the outstanding invoices have been paid you will net the remaining invoice value minus the factoring fee. Typically between 3-8% of the total value