Factoring Business Loan
Factoring Business Loans
These are for any business that sells their product of service to another business. This is not really a loan but instead buying of invoices at a small discount; it allows a business to shift money owed to them to into an asset (cash). This program can also often fund purchase orders. Factoring business loans are not based at all on the credit of the applicant, but rather the reliability of those they are selling the products or service to, to pay. A business can have a factoring agreement and borrow on invoices while having a different loan product as well
Loan is repaid when the invoice is paid so 15-60 days usually
Time in Business:
Any there is no seasoning requirements
Not an Interest Rate but a fixed %, which varies based on each situation but is quite low compared to other loan products because of the very short term the money is outstanding.
Excluded Business Types:
No exclusions as long as the business sells their product or service to another business.
USA, all 50 states & Canada. International is only possible if the invoices are for a large publically traded international entity
Invoices to cash allowing a business to have a much better cash flow. Approval Usually within 3-5 days.
Docs Needed to Apply:
Application and the Accounts Receivable Aging Report (with this a firm commitment can be made quickly).
Additional docs for Underwriting:
• The Articles of incorporation (or other proof of ownership)
• Copy of legal ID
• Samples of open purchase orders or invoices
• Financial statements (year end and most current)