Commercial Factoring
Invoice Factoring Get Paid Faster With Accounts Receivable Financing
Unlock business growth with Alternative/Specialty Financing – through Invoice Factoring.
Worldwide, factoring is by far the most common method of cash flow finance used by companies operating on a B2B (Business to Business) basis. It is used to solve the working capital shortfalls that occur when a business owner grants extended terms of payment to customers.
Worldwide, trillions of dollars of factoring services are provided to B2B business operators each and every year.
Although not at all limited in its uses, factoring is so commonly used to eliminate payroll and payroll tax worries it is often simply referred to as “Payroll Financing”.
Factoring addresses the problems caused by slow paying customers and is a powerful source of growth capital for employee intensive businesses such as staffing, janitorial companies, guard/security services, construction sub-contractors, and many others.
Are you the owner or operator of a Manufacturing Company?
If So, SECA Funding Company Can Get Your Invoices Paid Faster With Manufacturing Factoring.
Money that a business borrows is considered Debt Financing and Debt Financing is the use of borrowed money to finance a business.
Alternative Business Financing
ABF is a $100-billion-a-year industry in the United States alone and growing, it is used annually worldwide even more.
Accounts Receivable Factoring makes up about a third of all business financing.
Factoring is never considered a loan.
Factoring arrangements are always structured as the sale of an asset to obtain money with the asset being Accounts Receivables “B2B” business-to-business (the invoices due and payable).
Accounts Receivable are debts owed by a customer to a business for products or services that have been delivered and invoiced.
Accounts Receivable are due by law to be payed in one year or less. These debts are assets of the business.
An AR Financing Agreement can be structured as an asset sale or as a type of (LOC) Line of Credit to a business.
Factors never purchase Consumer Receivables.
Factors never purchase any invoices that are considered to be “in dispute” and Factors are never debt collectors!
SECA Funding Company’s Commercial Finance Consultants & Brokers Specialize In Construction Factoring, Truck/Freight-Transportation Factoring, Invoice Factoring, Medical Receivables Factoring/Medical Accounts Receivable Financing, International Factoring, Asset-Based Lending.
Speak with a Factoring Broker, Call Now! +1 (800) 413-5167
Extension 5 Domestic Business Factoring
Extension 6 International Business Factoring
Payroll Finance
The most common method utilized worldwide in business to address capital shortages when it comes time for payroll and the payment of payroll taxes is Payroll Finance.
Easily Accessed
Because factors actually purchase the accounts receivable of a business, the credit history or the lack thereof of a business is of little concern.
No Size Limitations
Once in place, factoring facilities grow with your company as it grows with no need to recontract for a larger credit line when required.
How Factoring Works
Factoring is one of the simplest forms of commercial finance and easiest to access and is used primarily by businesses operating on a B2B (Business To Business) basis.
With a factoring arrangement in place, each week you will provide a list of invoices you wish to sell to your factor for goods you have delivered or services you have performed. The factor will process and verify your invoices and then provide an advance of funds (typically 80-90 percent) and wire those funds directly into your business checking account. A Factoring Cash Advance also improves your cash flow!
Once the invoices are paid by your customers under normal terms of payment, the factor will wire the balance of your payment (the amount paid by your customer but not advanced) minus a small fee for services. Thirty (30) day factoring fees are very competitive and are about the same as if your customer paid you at the time of sale with a normal credit card.
Financing in Bankruptcy
Factoring is one of the few methods of financing readily available to small business owners struggling to re-establish their business through a Chapter 11 bankruptcy or reorganization.
We are experts in DIP (Debtor-in-Possession) financing which provides a capital lifeline when a bankruptcy is required to restructure and return a business to profitability.
While such “restructuring” of debt is commonly provided through the asset-based lending community for larger business entities, small business operators are only served by the factoring community.
Bankruptcy factoring or “DIP” financing (Debtor-In-Possession), is a unique niche area of factoring which requires a high degree of due diligence and additional legal processes not found in everyday factoring transactions. Because of these additional requirements, all factors do not provide service in this particular niche area.
SECA Funding Company can help when Financing a Bankruptcy is needed.
Factoring is one of the world’s oldest forms of business financing. It has remained since ancient times the best source for merchant financing, a proven financial service for positive business growth. Factoring has been around for more than 4000 years and Factoring can be traced back to the Mesopotamian king Hammurabi.
In ancient Rome, it was common for producers to employ the services of a “mercantile agent” to manage the sale of and assure delivery and payment for goods. There is also evidence that the Romans formalized methods and regulations for the sale of promissory notes at a discount, a direct characteristic related to modern factoring.
The roots of what can be called “modern factoring” are traced to the textile trade in England during the 17th century and Blackwell Hall. Blackwell Hall, originally built in 1397 A.D., acted as a merchant clearing house for the cloth trade, England’s primary commodity of that era. Blackwell Hall Factors acted as fee-based group of agents who monopolized the handling of the sale of textiles.
Factoring was used in the American colonies During America’s Colonial Era, factors provided payment advances to the colonists for shipments of cotton, furs, tobacco, and timber. As set forth in regulations contained in the Navigation Acts of the day, the colonists were strictly forbidden to manufacture goods in direct competition with the “mother country”.
We partner with over 500 Factors and Lenders and our dedicated professional consultants and brokers can show you how to maximize your cash flow and expand your business through our proven alternative financing solutions.
Factoring makes business “cash flow” move freely and is used to quickly recover the working capital of a business.
The working capital that has been tied up by the customers of a business which the business has extended payment terms to for goods and services performed.
The invoices purchased by a Factor are always considered to be self liquidating.
The Factor is repaid for any advances to the client for purchased invoices when the customers of the client pay the invoices, for this reason the creditworthiness of the customer not the client is the most concern in a factoring arrangement.
Ask us about Spot Factoring This transaction provides needed liquidity when a business is faced with extremely large orders that are out of the norm for the company also requiring invoice financing so that this type of profitable transaction can be undertaken and thus obtain approval. Call us to find out more +1 (800) 413-5167 Extension 9
- Exceptionally easy to access even for young, start up companies.
- Invoices are the collateral so factoring is perfect for service companies as well as manufacturers and distributors.
- Virtually unlimited facility size that grows automatically as your business grows.
- Many additionally back office benefits such as credit checks for new customers and expert collections for problem accounts.
- Factoring Is Not A Loan and it will never adversely affect the credit score of a business as Factoring never appears on any credit report of a business.
- An Advance on AR is not taxable income when retaining the ownership of the AR.
- AR Factoring/Financing Fees are a legitimate business expense and a tax deduction.
- AR Financing increases the cash flow of a business and it is quicker and cheaper than any tradition bank loan.
- As a member of the International Association of Commercial Finance Brokers (IACFB), we can assist our valued clients in securing both the commercial and consumer financing they need and deserve.
- A member of our courteous staff will be in touch with you within 24 hours!
- If you are currently experiencing a financial problem personally or in your business, it’s likely we can help. To find out how and explore your options, simply request Factoring or Business Finance by clicking the button below.
Accounts Receivable are listed as an asset on the balance sheet of a business because its money owed the business.
What if you could access the cash tied up in your outstanding invoices today?
Factoring - Availability Availability 90% Asset-Based Lending - Availability Availability 60% SBA Microloan- Availability Availability 40% SBA 7A- Availability Availability 30% MCA / ACH Availability 85%
We Provide The Best Customer Service And The Best Rates For Factoring.
This Is The Reason SECA Funding Company Has Remained The Industry Leader For More Than 30 Years.
