Factoring
Waiting 30, 60, or 90 days to get paid from an outstanding invoice can cause financial tension in any business. Factoring eliminates the waiting period on accounts receivable and gives businesses the capital they need to move forward. Get the cash you need now and let the factoring company handle payment processing.
Convert Invoices into Immediate Cash
Overview
Factoring is the sale of accounts receivable to a factoring company, who provides a lump sum percentage of the account values right away. When your customer is ready to pay, they send their payment directly to the factoring firm, who recoups their percentage and sends the rest on to you, minus a small fee.
SIMPLIFY
Factoring a full contract allows you to simplify your business’s accounting by receiving a consistent payment every month at the same time. You’ll get funding you can count on, no matter when your customer decides to pay. Because contract factoring covers multiple invoices from the same customers, most factors offer big discounts on fees and interest rates.
GROW
Don’t wait months to grow your business when you can sell your AR for cash now. Factoring invoices and purchase orders allows your business to move ahead sooner to bring in inventory, supplies, and labor ahead of large projects. Take on bigger orders and expand your business faster with factoring.
ADVANCE
Your creditors won’t wait for you to receive payment from your customers before you pay the bills. Factoring lets you get the cash you’re owed in advance so that you can satisfy outstanding debts now and avoid late charges, penalties, and service disruptions. Factor multiple accounts together for a larger payment.
SAVE
Factoring saves you time and energy you might otherwise need to invoice, process payments, or send out reminders. Once you get the funds you need from the factor, you can move ahead without worrying about follow-up. As long as your customer pays on time, all you have to do is wait for any remaining funds to come through from the factoring company.
Important Features of Factoring
Loan Highlights
Factoring allows businesses to sell their invoices at a discount for immediate cash flow, bypassing the wait for customer payments.
Get cash from invoices, purchase orders, and contracts
Factors pay a lump sum on the value of AR assets.
The factor collects directly from your customers.
Remaining funds get forwarded to you.
Your Path to Funding
THREE STEPS TO FUNDING
APPLY ONLINE
Your information helps us to begin loan matching.
SOURCING
We source options for your deal, keeping you informed at all times.
CLOSE AND FUND
We support your deal through the closing and remain in touch after.
Where the journey for funding begins.
Today's financing market is complex. Equity Ridge provides the pathway to funding.
LENDERS IN OUR NETWORK
IN AVAILABLE FUNDS
FASTEST CLOSE
Benefits
Factoring provides businesses with a quick and reliable way to maintain cash flow by converting unpaid invoices into immediate funds.
This helps cover operational costs without taking on traditional debt.
You don’t need good credit to qualify.
You avoid late payments, fees, and credit damage.
Factoring can be used at any time.
Your customers pay the factor directly.
Potential Drawbacks
Challenges
Factoring can be more expensive than other financing options due to the fees involved, and businesses may lose a percentage of their invoice value.
Factoring requires AR assets.
If your customer wants a refund or return, you must pay the factor back yourself.
Factoring can be more expensive than traditional financing.
