Factoring is a powerful financial tool that allows businesses to unlock immediate cash flow by leveraging their outstanding receivables. Instead of waiting 30, 60, or even 90 days to get paid by customers, a factoring facility converts those invoices into same-day liquidity.
As a commercial finance brokerage, we help clients evaluate whether factoring aligns with their operational model and growth strategy. We present only to lenders who understand the client’s industry and can provide transparent fee structures and scalable credit limits.
How Factoring Works
Factoring is not debt. It is the sale of receivables to a funding source in exchange for immediate working capital.
• Your client delivers goods or services as usual
• You send the invoice to both the customer and the factoring company
• The factoring company advances a portion of the invoice (typically 80–90%)
• Once the customer pays, the remainder is released, minus the factoring fee
This cycle repeats as new invoices are generated, creating consistent access to capital without incurring new liabilities.
Factoring is best suited for:
• Businesses with slow-paying but creditworthy customers
• Rapidly growing companies needing capital to keep up with demand
• Firms with limited access to traditional loans due to credit or time in business
• Industries where receivables dominate the balance sheet (e.g., staffing, logistics, manufacturing, government contracting)
We match clients to factoring partners that understand their industry terms, average invoice values, and customer payment behaviors.
There are two primary types of factoring:
• Recourse Factoring – The client assumes risk if the customer fails to pay
• Non-Recourse Factoring – The factoring company assumes the credit risk
We work with lenders offering both models and help borrowers understand pricing, reserve requirements, and customer notification policies. We also ensure the process remains seamless for clients’ customers.
Many businesses are unfamiliar or hesitant with factoring due to misinformation. Our consultative process clarifies:
• How to avoid hidden fees and unfair contracts
• What funding timelines and invoice minimums to expect
• Whether full ledger or selective invoice factoring is best
• How factoring affects customer relationships and bookkeeping
Our goal is to demystify factoring, eliminate friction in setup, and ensure the client gains a working capital solution that grows with them.