Factoring / Accounts Receivable Financing
Factoring allows a business to take an advance on its account receivables. This option is traditionally used for a business that cannot afford to wait to be paid on the receivables that is owed. Factoring, like equipment financing is an option that doesn’t require any collateral because the receivable being advanced on is essentially taking on that role. These advances are generally quick to process and are usually paid back within a 6 month period or when the receivable becomes due. With this option, the advance hinges more on the entities that owe that receivable rather than your business, and because of this, these advances typically come with some of the highest interest rates.
- Business owner credit is not considered
- Quick Processing and approval process
- Solely dependent on invoice value
- Loan Amount – value determined by invoice amount
- Process Time – 1 to 5 days
- Interest Rate – 7% to 19%