Washington - Factoring and PO Funding
Having to offer payment terms to larger customers can often lead to cash flow problems. Most small companies do not always have the financial wherewithal to offer terms and also pay their expenses at the same time. This situation leaves them in a bind because larger companies will often demand terms as a condition of doing business with them. For many, this can create a scenario where they risk financial problems if they offer terms or risk losing the customer if they don't. Neither option is particularly attractive.
There is an alternative. You can solve this problem by factoring your invoices. This improves your cash flow and provides the needed capital to cover business expenses. It also allows you to offer terms with more confidence, allowing you to grow your company.
Factoring rates as low as 1.5%. Advances as high as 90%
Click here for a quote or call (866) 730 1922
(subject to monthly volume and industry)
Program for companies in the service,distribution, oil field services, janitorial, and manufacturing sectors.
Program for freight companies and brokerages that are located in Washington.
Program for product resellers and importers in various industries. Covers the cost of paying suppliers by letter of credit.
Funding for small and medium sized trade companies that sell goods and services to customers outside the US and Canada.
Financing for subcontractors in the construction industry and related trades.
Financing for companies that supply services and products to Washington state agencies and to the federal government.
Program for companies that provide guards for commercial, industrial and government sites.
Financing solution for staffing and employment companies in the business and medical fields.
Factoring for new businesses, small office/home office (SOHO), independent professionals or any business with less than $250,000 in revenues.
How does it work?
Factoring enables companies to finance their invoices by selling them to a factoring company. In turn, the factoring company advances a percentage of your invoices to your company which can be used to cover important expenses. The transaction concludes when your end customer pays the invoice in full. Invoice factoring allows companies to optimize the use of their most important collateral - it's accounts receivable.
Transactions are often structured as follows:
- You deliver your product or service to your client
- You generate an invoice and sent it to your client (with a copy to the factoring company)
- You get an immediate funding advance of 70% to 90% of your invoice
- The factoring company gets paid by your client 30 to 90 days later
- You get a second installment (the remaining 10% to 30%), less a funding fee
One important benefit of working with a factoring company is that they are used to working with businesses that have cash flow problems due to slow paying customers. Most factoring plans are easy to qualify for and can be setup in a week or so - allowing you to solve the problem quickly. This makes factoring an ideal solution for companies who can't get bank financing and need funding due slow paying customers.
Approval criteria for factoring include:
- Have commercial customers with solid credit credentials
- Have good gross profit margins
- Have invoices that are free of liens or encumbrances
- Be free of major legal/tax problems
- Have good and experienced managers
Looking for more information to make a decision?
Are you looking to learn more about our solutions? Here are some additional resources that will help you make an informed decision.
- What is accounts receivable factoring?
- Choosing a factoring company
- Business financing for government contractors
- Advantages of invoice factoring
- Business financing for directional drilling (directional boring) companies using factoring
- Business financing for logistics companies
- Are your commercial customers worthy of net 30 payment terms?
- How to get the best factoring rate
Questions? Call (866) 730 1922. Toll free in Washington.