Invoice Factoring
Invoice factoring can be a valuable financial tool that helps businesses manage their cash flow effectively. Invoice factoring involves selling unpaid invoices to a third-party company, known as a factor, at a discounted rate. This allows businesses to access a significant portion of their accounts receivable immediately, rather than waiting for their customers to make payments.
-
Use: Advance on unpaid invoices (B2B).
-
Amount: $10K–$5M.
-
Collateral: Invoices themselves.
-
FICO: 600+ (less important, invoices matter more).
-
Income: Yes, must have invoiceable revenue.
-
Terms: $10K–$5M; advance rates – 90% of invoice value.
-
Equity: N/A.
What We Can Fund
We look for the following minimum qualifications:
-
B2B Service Provider or B2B Product Seller
-
Any Size, $10K - $10M
-
Clear Audit Trail
-
Creditworthy Customers
-
Customers in the U.S. and Canada
Our Preferred Industries
-
Staffing
-
Manufacturing
-
Oil & Gas
-
Wholesale & Distribution
-
Logistics
-
Government Contractors
These are Industries We Cannot Factor:
Guns and Ammunition, Tobacco / Cannabis, Construction
Is Factoring Right for You?
Still Not sure if factoring is right for you, Use our questions below to help you out!!!
Are your goods and services final sale?
If so, you may be compatible with factoring.
Do you allow returns or exchanges?
If yes, you may get a lower advance rate, or factoring may not work for you.
Are your goods on consignment?
If yes, we are unable to factor you.
If you take deposits from your customers, are these amounts reflected in your invoicing?
Deposits or prepayments must be included as deductions from the invoice's total.
If this is missing from an invoice, we are unable to factor you.
Are your goods or services warrantied by you?
If goods are warrantied, but not by you, it's usually fine. If warrantied by you,
factoring may not work for you.
Do you invoice in arrears?
If No, we are unable to factor invoices, until goods or services are provided in full.
Do you progress bill or bill in increments?
If yes, factoring may not work for you.
What terms do you offer your customers?
Terms of net 15 to net 90 are likely a fit.
Do you have proof your goods or services were provided and accepted?
If yes, factoring may work for you. If no, we may be unable to factor you.