Factoring

Allowing extra time to satisfy invoices can be an incentive for clients but may leave a business in a financial bind. Large unpaid accounts could hamper the acquisition of materials needed to fill another order or hinder other operations. Fortunately, outstanding accounts payable and invoices can be leveraged to create cash during the waiting period.

FACTORING

Overview

Factoring allows businesses to turn unpaid invoices, purchase orders, or accounts receivable into immediate cash flow. Instead of waiting on clients to pay, a lender (factor) provides an upfront lump sum based on the value of outstanding accounts. Since repayment depends on client reliability, even businesses with weaker credit may qualify. The factor then collects directly from the client, deducting a fee before forwarding the remaining funds back to the business.

Invoice Factoring

Convert unpaid invoices into working capital to cover daily expenses.

Purchase Order Financing

Use purchase orders to access funds needed to fulfill large customer orders.

Contract Factoring

Leverage long-term contracts to secure cash before clients make payments.

KEY FEATURES AT A GLANCE

Loan Highlights

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Invoice-Based

Factoring allows a business to borrow on its outstanding invoices and purchase orders.

Collection Support

The factor takes over the collection from the business’s clients.

High Advance

Up to 80% of the account value can be funded, in some cases.

Simple Process

The application process can be simpler and shorter than a traditional loan.

150+

Lenders in our network

$500M

In available funds

24H

Fastest close

BENEFITS THAT ADD VALUE

Pros

Flexible Use

The funds from factoring can be used in several different ways, even as working capital.

Less Admin

Businesses can offload collection responsibility to the factor and concentrate on other tasks.

Low Credit Barrier

A high credit score may not be necessary to qualify for a factoring loan.

Asset Alternative

These loans can be a great alternative to liquidating assets to pay expenses.

FACTORS TO CONSIDER CAREFULLY

Cons

Borrower Liability

If a client refuses to pay or requests a return, the borrower must still satisfy the loan.

Limited Scope

Only one invoice or purchase order may be financed at a time.

Relationship Risk

Factors can negatively affect client-business relationships.

Higher Fees

If the client has a poor credit rating, a factor may charge a higher fee to mitigate their risk.

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