Category Archives for Factoring

Factoring is a financial arrangement in which a business entity sells its invoices to a third-party lender (factor) at a discounted rate to raise the funds. It is a technique for financing where an outright selling of trade debts takes place between a firm and a factor. The terms and conditions of the transaction are given in the agreement. Businesses prefer factoring to meet their immediate cash flow requirements.

Types of Factoring

Factoring has various types that you must know about. It includes:

Disclosed and Undisclosed Factoring

When the factor’s name is indicated in the invoice by the seller, it is called disclosed factoring. When, on the other hand, the name of a factor isn’t mentioned on the invoice, it is undisclosed factoring. In the latter, the factor maintains the sales ledger of the seller and has full control over it.

Recourse & Non-Recourse Factoring

In recourse factoring, financial institution will resort to the seller when debts aren’t recovered. Credit risk remains with the seller. But, factor can’t go to the seller in the non-recourse factoring even if a debt remains unrecovered.

Advance and Maturity Factoring

When the factor gives advance payment to the client in lieu of uncollected invoice, it is called advance factoring. Maturity factoring is the process when factor doesn’t give any advance to the firm. The money, rather, is collected by the bank.

The Process of Factoring

Factoring helps in maintaining the sales ledger of the seller or business entity. The factor is responsible to take care of sale transactions. It finances the business for its cash needs. But, there is a definite process that a business must follow for this working capital finance.

• The business entity raises invoice against the sale of its goods or services.
• It sends the invoices to the factor for verification and funding.
• After verification, the factor will pay 75-80% of the funds.
• The Factor waits to receive payments from the customers.
• Upon receiving the payments, factor pays the remaining amount as well.
• There may be an upfront fee charged by the factor. It depends on the agreement between the parties.

Heavy Duty Tractor & Trailers Factoring

Tractor and trailer factoring in California

Truck factoring is a great option for business owners looking to ensure continued company growth. If you’ve had trouble with having enough working capital or getting employees paid on time, then you should definitely look into heavy duty tractor and trailers factoring. Read on to learn how truck factoring can help your business grow. Get Started With Factoring Benefits of Heavy Duty Tractor and Trailers Factoring A tractor trailer is a transport vehicle consisting of a semi-tractor and attached trailer, Read More

Benefits of Freight Factoring

Freight and semi truck factoring

You’ve been thinking about freight factoring a lot, especially since you started seeing ads for it pop up everywhere. But as you think about it more, you wonder if there’s any real benefit. “Freight factoring seems good, but will it really help?” If this sounds like you, we understand. Freight factoring can seem really great, but unless it provides a real benefit to you and your customers, why bother with it? For a lot of reasons, actually. Below we’re going to go over Read More

How to Choose a Truck Factoring Company

Truck Factoring, Freight Factoring

Truck factoring – is it right for you? You’ve been on the road for hours. You’ve just delivered your load when your customer said, once again, that they can’t pay you yet. You wanted to ask why but knew it wasn’t worth pressing. They never pay on time and probably never will. So, with your stomach grumbling and your feet too tired to move, you make the trek home and hope you get paid soon. “There has got to be a Read More

What is Freight Factoring?

Commercial Truck Financing

What is Freight Factoring? Freight factoring ensures your company has the proper capital to cover overhead costs, pay employees, and materials needed for your business. Imagine this for a moment. You’ve been on the road for hours. Your belly, tank and wallet are all running on E. Then, after safely delivering your load on time you hear the words no one wants to: “Sorry, I can’t pay you for another 45 days.” Your heart sinks. “Another late payment?” you think to yourself. Read More

Post-Irma Rebuild Replacement Construction Equipment and Invoice Factoring

Construction Equipment Financing

Hurricane Irma is yet another in a string of extremely destructive 2017 hurricanes that has decimated homes, cars, businesses, and other property, not to mention people. Irma has claimed 42 lives so far, and the number is expected to rise. The devastation was vast. Twenty-five percent of all homes in the Florida Keys were destroyed by the storm. According to FEMA, only 10 percent escaped without home damage. Irma’s wind-speed reached a whopping 185 mph, making it a Category 5 Read More

Freight Factoring vs Trucking Factoring

trucking factoring

Can Factoring for Truckers Help You? Have you thought about using trucking factoring as a way to boost your cash flow? Waiting for payment when you have already delivered the load can be a tedious situation in which to be. As a trucker, you are out there on the road. Sometimes you’re there for weeks on end. You have bills to pay and other needs that could certainly benefit from a quick cash boost. Whether you need a fill-up on Read More

Telecommunications Financing

Telecommunications Financing

Cell Tower Factoring Are you being handicapped due to your account receivables being 30 to 60 days out? After interviewing a business owner of a telecommunication tower company, I found out that there’s a huge need for some bridge financing in this industry. Doe your company have receivables on the books that are anywhere from 30 to 60 days out? From what I gathered after this conversation with this business owner, it is very unlikely to be paid on jobs Read More

Invoice Factoring

Are you finding it hard to finance your international receivables? It’s not impossible to get financing on those receivables, but you must know there is a limited amount of companies that can execute in this unique space. While most companies were taking time off enjoying the holidays we have been very busy solidifying more relationships and partnerships that can help compliment our existing business lending programs. This is the newest lending program we were able to add to our lending Read More