Factoring in Alabama

Do you need working capital immediately for your Alabama company? Are your invoices 30, 60, 90 days outstanding? We can help get you your cash now.

What is Invoice Factoring and How it Benefits AL Companies

Non-recourse accounts receivable factoring is an effective funding method for small to medium businesses to access immediate working capital.

• Factoring relieves the pain of having to wait for 30, 60 or more days to get paid by your client.
• AR factoring is the selling or assigning of your unpaid invoices to creditworthy clients to a factoring company.
• Once your invoices are verified and assigned to the factoring company, a factor will advance you up to 92% against your invoices.
• You will receive the remaining balance once your customer has paid minus low-cost fees.
• Non-recourse credit protection 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 keep your business afloat.

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.

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 Types of AL Industries does Factoring Serve?

We have proudly served the Yellowhammer State of Alabama with Business Loans, Invoice Factoring, and Purchase Order Funding since 1998.

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

Need working capital now? Can’t wait 30 or 60 days for your money? We can help.