Factoring 101
Factoring is the purchase of accounts receivable at a discount. That is, a factor pays a client immediate cash for the client’s invoices for which payment is due in the future.
Factoring is not a loan with interest due, but the purchase of an asset at a discounted rate from the asset's face value. Therefore, factoring clients are not paying an interest rate as they would for a bank loan, but a discount, as they would if they were giving terms to a customer for early payment.
Factoring is not a loan with interest due, but the purchase of an asset at a discounted rate from the asset's face value. Therefore, factoring clients are not paying an interest rate as they would for a bank loan, but a discount, as they would if they were giving terms to a customer for early payment.
What Is Factoring?
Specialists in
Small Business Factoring
Small Business Factoring
Member,
International Factoring
Association
International Factoring
Association
866 432 2408
1% starting rate
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No application or set up fees
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No monthly minimum charges
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No long-term contracts
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No application or set up fees
-------------------
No monthly minimum charges
-------------------
No long-term contracts
How Does This Work?
Here is a diagram of how factoring typically works.
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Tel 866 432 2408
Fax 253 883 1834
Fax 253 883 1834
“Our business is growing steadily and quickly because we are factoring with you.”
“If more companies knew how easy and how beneficial it is to factor when needed, they wouldn’t sweat it as to when a check comes in.”
7 Factor pays rebate to client:
Rebate =
Amount Received minus
(Advance + Discount)
Rebate =
Amount Received minus
(Advance + Discount)