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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.
Speak with a Factoring Broker, Call Now! (800) 413-5167
Extension 5 Domestic Business Factoring
Extension 6 International Business 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 has been around for more than 4000 years and Factoring can be traced back to the Mesopotamian king Hammurabi. Factoring was used in the American colonies.
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.
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.
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.
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.
- 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.
- 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.
- 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 complete our contact form by clicking the button below. A member of our courteous staff will be in touch with you within 24 hours!
- Factoring Is Not A Loan.