How Factoring works
Is a Factoring
Company For You
- Providing factoring services nationwide
- Over 70 years of factoring company experience
We can do what banks can't
Here is additional information on factoring
to help you with your decision.
How are fees and advance rates determined?
It is based on several factors:
The creditworthiness of your clients
Your monthly billing volume
Average invoice size
Average days to payment
Fees can range from 2-5 % of the invoice's face value.
For example if the invoice's value is $1,000; a fee of 3% equals $30.
What is an advance?
The amount of money you receive immediately when we
buy your invoice. The balance is returned to you when
your customer pays the invoice.
Advances range from 60-95% of the invoice's face value.
For example if the invoice's value is $1,000 an advance
rate of 80% equals $800. The balance of $200 less the
factoring fee is returned to you when your customer pays the invoice.
Comparing Bank Lending Rates to Factoring?
When compared to bank lending rates, factoring
initially appears to be very expensive. Here are five typical
questions/concerns that are raised by potential factoring clients
|Monthly Gross Sales||$50,000|
|Cost of Goods Sold||$30,000||60% of Gross Sales|
|Monthly Gross Profit||$20,000||40% of Gross Sales|
|Variable Expenses||$8,500||17% of Gross sales|
|Total Expenses||$18,500||37% of Gross Sales|
|Monthly Net Profit||$1,500||3% of Gross Sales|
|Monthly Gross Sales||$100,000|
|Cost of Goods Sold||$60,000||60% of Gross Sales|
|Monthly Gross Profit||$40,000||40% of Gross Sales|
|Variable Expenses||$17,000||17% of Gross Sales|
|Factoring Fee||$3,000||3% Fee|
|Total Expenses||$30,000||30% of Gross Sales|
|Monthly Net Profit||$10,000||10% of Gross Sales|
To find out how we might structure
a factoring deal for you, please complete our online factoring company application.
To talk with a member of our sales team,
please contact one of our regional offices at:
We are currently factoring accounts receivable nationwide including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.