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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. Looking for something different? Visit our partners at StartupBusinessLoans.org

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.

When You Are Ready, We Are Here

Factoring.net is ready when you are. If you’re running low on working capital or just need some extra funds, Factoring is a great way to leverage your already existing assets – your receivables. Fill out the short application now or give us a call.

  • Factoring is not a Loan, it's a sale of YOUR receivables!
  • Our rates are the lowest in the industry, starting at 1.5 %.
  • We offer a non-recourse factgoring. Sleep soundly at night!
  • We fund approved deals within 48 hours.
First time factoring?Learn about Factoring

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Don't take our word for it

Everyone was very helpful to our company throughout the process. We really needed to get cash for invoices immediately, and Kris along with the rest of his team delivered.

- Kristin Wintum Charles Town, WV testimonial
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