What is Discount Factoring?
Discount Factoring, also known as recourse factoring, provides your business with versatile and immediate cash that will give you the funds to grow, restructure, take advantage of supplier discounts or even to fund payroll. Your company probably needs more cash flow to support seasonal demands, growth, and more. Discount factoring is used by many large well-known companies. It is less expensive than traditional factoring, but, like traditional factoring, it is less restrictive than equity financing, allows you to access cash whenever you need...
read moreIs Factoring Expensive?
This is a great question, and the answer is maybe, if not used correctly. It can be expensive if not utilized correctly, or it can mean the death of your business if factoring is not available. Death would seem to be the highest expense possible. How do you use Invoice Factoring correctly? You use it to grow your business or save your business. Comparing a line of credit from a traditional lender where the amount of money you can access is based on your company’s existing assets, Invoice Factoring is based on the assets you can generate,...
read moreWhat is Spot Invoice Factoring?
Spot factoring is the one time or occasional selling of your invoices to a factor. It is different in a couple of key ways versus a traditional factoring company relationship. There is no long-term contract Most Factoring relationships will have a 6 month to an 18-month contract. This way you know you can get your needed working capital every week and the Factoring Company knows that they will be able to employ a certain amount of capital every week for your use. Spot factoring is typically more expensive Since it is a one time or infrequent...
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