top of page
invoice-hands-business-paper-bill-document-office-desk_361816-3484.jpg
Factoring

Factoring is an exclusive financing option for B2B companies.  It involves the sale of customer invoices for a large pre-payment from a lender (called a factor), with the balance due when the customer eventually pays.  Your ability to qualify for factoring depends more on the financial profile of your customers than your business---this is because lender repayment depends on customer payments.

 

Here is an example:  You factor a $100K invoice for products that you sold to one of your customers.  The factor gives you $85,000 immediately as a prepayment.   45 days later, your customer pays the $100K invoice and you receive another $12K.  This means that the cost of the factoring was $3k.  This makes sense if you need to speed up your receivables but it may be an issues if you have a tight gross margin.

Business meeting
Our goal at Allen Capital Funding is to advise and assist our clients after first learning about their businesses and needs. We recommend specific funding solutions only after this important first step.

Your trusted partner in accelerated business success.

Menu

Home

Financial Check-up

About

Blog

Products

Contact Us

Book Online

Products

Credit Lines

SBA Loans

Real Estate

WC Funding

Equipment Financing

Factoring

Purchase Order Financing

Contact Us

27 Miller Farms Dr,Miller Place, NY 11764

Shop

© 2024 by Allen Capital Funding. All Rights Reserved.

Commercial Lending Brokerage

bottom of page