Factoring is an asset-based lending procedure that helps give your borrowing process the added element of flexibility. We offer it as an option to business owners who understand that working capital is a necessary resource, yet don’t want to risk constraining their future growth.
There are quite a few benefits to factoring for businesses. Factoring differs from a merchant cash advance, in that the amount you borrow is fixed and decided upon at the start of the relationship. Likewise, factoring your invoices gives you the additional flexibility to borrow an amount that is decided by your future sales. In essence, it is basically a financial transaction in which you sell your invoices, at a discounted percentage, to a third party. In this way, you are able to cover your daily expenses and eventually recoup the majority of the profits represented by those invoices.
Our minimum for factoring is $5,000 monthly and our maximum is $10 million for larger companies. For other situations, the amount you borrow is contingent on your sales themselves. This protects you from a sudden change in economic climate, or any other external factor. You will be able to use the working capital however you think is best.
An additional benefit to invoice factoring is the application process. Similar to a merchant cash advance, the application is unbelievably simple in comparison to the traditional bank loan process. Where you’re looking for a low-risk, high-reward way to get working capital for your business, factoring may present the best results for your company.