What is factoring?

Factoring is a business finance tool that helps owners who cannot afford to wait 30 to 60 days to get paid by their commercial customers. Factoring provides you with the necessary funds to meet payroll, make rent and pay your suppliers on time.

Why do people sell their cash flow?

Money is worth less in the future. It's the concept of "the time value of money" that tells us that $1.00 today is worth a lot more than $1.00 ten years from now. Because of the time value of money, a seller of cash flow may actually save money in the long run, especially if they choose to invest the cash.

Why would someone want a lump sum for their note or receivable?

It's a No Debt Solution. Unlike borrowing money to meet cash flow needs, factoring does not create debt. Getting a loan increases your ultimate expenses by the amount of interest and reduces the bottom-line value of your company. Loans also require collateral limited by your hard assets. Factoring is NOT a loan, so there is no debt to repay. Your balance sheet is more attractive and your financial position strengthened.

How does factoring work?

It's a simple process. Factoring is straight-forward and uncomplicated. The first step is a basic review of your accounts receivable. After the initial paperwork is completed, we activate our national network of factors, searching for the best possible match. Once approved, most companies receive their cash within 48 hours.

What happens once you're set up with a factor?

1. Your customer places an order with you.

2. You provide the invoice to your facor and receive funding within 48 hours.

3. You use the funds to provide goods and services to your customer.

4. The factor collects payment from your customer.