Factoring.net

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Answer these basic questions about your business and start the application right now. The whole process takes less than 5 minutes.

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  • benefits Lowest Rates Possible! ok

    Our rates are lowest in the industry, starting at 1.5%!

  • benefits Funding within 48 hours ok

    We fund approved deals within 48 hours.

  • benefits Non-Recourse Factoring ok

    We offer а non-recourse factgoring. Sleep soundly at night!

Factoring.net – Get Connected with Cash

What is factoring?

As with all factoring companies we find ourselves being asked this question quite often. Many folks don’t understand this great way to provide your business with working capital. Basically, factoring is a type of business financing that allows businesses to sell their current accounts receivable invoices at a discount to a factoring company, like Factoring.net. The factoring company, will provide 70-90% of the purchase price of the accounts with payback of a low percentage of the invoice total. Factoring is not a loan so the money received does not go onto the businesses credit report and the businesses past credit history is not important for determining the eligibility of the business for this type of business financing, eligibility is determined soul from the businesses accounts receivable assess.

Those involved with factoring

  • The Invoice seller - the business owners who want to free up cash
  • The Factor -  factoring companies like Factoring.net
  • Invoice payers - the debtor to the business

There are three primarily types of factoring offered by lenders

  • Recourse Invoice Factoring
  • Non-Recourse Invoice Factoring (Domestic Factoring)
  • Export Factoring

*Each type of factoring offers its own benefits to the business.

Recourse Invoice Factoring

Recourse invoice factoring is financing against your businesses accounts receivable but would like to continue managing collections on your accounts. Customers would continue to pay directly to you and the lender would not be responsible for collections of the proceeds. As soon as your customers make the payments, your business would then submit the payment to the lender. This is the most common type of factoring used by businesses. With this type of factoring, the business that sells the invoices to the factoring agency will be liable to the factoring agency for any bad debt that occurs. In layman’s terms, if the customer does not pay the invoice the business is responsible for repaying the loan.

Non-Recourse Invoice Factoring

Non-Recourse Invoice Factoring (Domestic Factoring)  is also financing against your businesses accounts receivable as with invoice factoring. Rather than managing collections on your accounts you allow the lender to do so. This is a more preferred type of factoring because if the customer does not pay the invoice total the lender does not seek out the business that sold the invoice for the funds but they pursue to customer until payment is received. If the account debtor doesn’t pay, the factoring company takes the loss and you are not held responsible.

Export Factoring

Export factoring is financing against your businesses export receivables. This is a great way for businesses that do world wide sales to obtain working capital for their business. It holds the same terms and conditions to recourse financing most of the time, but flexible factors like Factoring.net can offer non-recourse invoice factoring.

Ready to factor your receivables?When you are ready to turn that pile of invoices into cash just....
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Frequently Asked Questions

How does factoring really work?

It is very simple and straight forward. We will look at your invoices and come up with a way to give you the maximum amount of money possible.

Is this a business loan?

No, this is very different. Business loans are difficult to get and can take a long time. A factoring deal is fast and not credit driven.

Why Factoring.net?

We treat each and every client as if they are the most important. We have been in business over 30 years by taking this approach.

What are factoring rates?

The discount charge ranges from 1.5% to 4%. Discount charges are calculated daily and applied to the principle balance monthly.

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