Factoring is the purchase of valid Commercial Accounts Receivable [AR] for cash.

Factoring gives your business the power to grow, without giving away equity or taking on debt. Contrary to what you may have heard, factoring is NOT a tool used only by struggling companies. Financially smart companies use factoring as a powerful tool to release capital tied up in AR.

Do I have to sign a Personal Guarantee? Factoring is not a loan; it is the process of purchasing valid Commercial AR [invoices] from your business at a small discount. Unlike most banks and other factors, there is NO personal guarantee required with our professional funding services.

Almost every business can qualify. Our guidelines are very simple: if you have AR, due to a sale in a business to business transaction, you may qualify. Any size invoice can be funded, provided the service you offer, or the product you sell has been completed and delivered.

Your customer will be notified to pay us directly. When invoices are factored they will be stamped with the address to send payment to prior to being mailed to your customer. Your company should never deposit invoice checks that were already purchased by a factor.

If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien. Some banks will accommodate the request and others may decline depending on your circumstances. Our number one referrals come from loan officers willing to help out the client in cash flow needs. They are very familiar with this kind of interim financing. The other alternative is to pay off the loan if there are plenty of receivables to leverage the buy out.

The last thing we want is for you to lose a customer. We are not a collection agency. We will never harass your customers for money. Maintaining your customers’ goodwill and confidence are of utmost importance to us!