Sell receivables for cash, with the factor that fits your customers.
Factoring is the sale of a company's invoices to a factor, which pays most of the invoice value up front and the balance, less its fee, when the customer pays. It converts receivables to cash without a conventional loan, and it suits companies that are growing quickly, have thin balance sheets or have strong customers. Programs we work on start at $5 million and are typically $10 million to $250 million in facility size.
How it works in a paragraph
A factor looks mainly at the quality of the company's customers, the people who will pay the invoices, rather than at the company itself. It verifies invoices, advances a percentage of face value and holds the rest in reserve. In recourse factoring the company stands behind unpaid invoices. In non-recourse factoring the factor takes defined credit risk on the customer. Fees, advance and structure vary by factor and deal. Nothing here is an offered term.
The other side of the market
Borrowers see lenders by type. Lenders see borrowers screened against their written criteria before introduction. Each side has its own page.