BusinessCash is funding during the COVID-19 crisis.

factoring in alaska

Does your Alaska company need working capital NOW? Get the cash you need. Fast and Affordable.

  • Since 1998 funding the Last Frontier state
  • Up to 92% of cash is advanced for AK Companies and then get the balance once your customer pays in full
  • Fast and easy financing in as little as 24 hours
  • Bad credit? No problem. We look at the credit of your client, not yours
  • Tax issues? You can be financed
  • Non recourse credit protection with every factoring program

How does Invoice Factoring and PO Funding work for AK Companies?

Non-recourse accounts receivable factoring works perfectly for small to medium businesses that can’t wait 30-90 days to get paid by their larger, creditworthy customers.

AR factoring is selling your unpaid invoices to creditworthy clients to a factoring company.

Once your invoices are verified the factoring company will advance you up to 92% against your invoices. Service businesses get the most advanced because simply, the transaction of providing services are less risky than hard goods.

You will receive the remaining balance once your customer has paid in full minus low-cost fees. Non-recourse lowers risk in case of client bankruptcy. Factoring allows businesses to skip the unreliability and drama of today’s bank loans and lack of lending.

There is a very good chance your business is growing and you are actively billing. Problems arise when you have to put out more material, more labor, more payroll expenses rather than are coming in. The fact is, you need cash now, not in 30-60-90 days. With working capital so precious and difficult to find, invoice factoring can help finance your business.

What is a Typical cost of Factoring?

Factoring fees are based on length of time for payment from your client. Below is an example chart of how fees work based on timeframe.

Fees vary based on your unique funding situation.

Length of Time for Payment Invoice Factoring Rate
20 days 1.00%
30 days 1.50%
45 days 2.50%
60 days 3.00%

Keep in mind that a good factoring company will work with you based on your customer’s payment history and make sure your terms are favorable to you.

Your customers pay in a particular pattern. If your customers all pay in 37 days, then a fee based on 30-day increments would be slightly more costly. That’s because you will end up paying additional factoring fees based on the extra seven days. Factors can design your fees based on your unique situation – daily, 10-day increments, 60-day flat fee, etc.

What Alaskan Industries Benefit From Invoice Factoring and PO Funding?

The oil and gas industry dominates the Alaskan economy, with more than 80% of the state’s revenues derived from petroleum extraction. Energy sector suppliers can highly benefit from invoice factoring and po funding. These funding packages keep Alaskan business’s cash flow at healthy levels allowing them to meet payroll, reinvest, buy equipment, rehires and anything else that is needed for growth and stability.

Alaska’s main export product (excluding oil and natural gas) is seafood, primarily salmon, cod, Pollock, and crab. Seafood wholesalers, distributors, importers and exporters can also benefit greatly by leveraging their receivables through factoring. All Alaskan companies wants and need to get paid quickly and efficiently once their product is delivered. Invoice factoring get you paid quickly, efficiently, and affordably.

Employment is primarily in government and industries such as natural resource extraction, shipping, and transportation. Government contractors are a perfect match for factoring. Military bases are a significant component of the economy in both Fairbanks and Anchorage. Federal subsidies are also an important part of the economy, allowing the state to keep taxes low. Its industrial outputs are crude petroleum, natural gas, coal, gold, precious metals, zinc and other mining, seafood processing, timber and wood products.

And of course, tourism is an important part of the Alaskan economy which employs hospitality workers, security guards, managers, marketing professionals and many more. Staffing firms do quite well when factoring receivables. Staffing tends to receive the highest advance rates and benefits greatly from invoice factoring.

Here is a list of just some of the Alaska client types we have helped with their Working Capital Needs and the Services we provided:

Ready to get funded? Call us toll-free at (888) 400-5930, complete our secure online funding application or chat with us.

Rating: 5.0/5. From 2 votes.
Please wait...

Back to Top