How does Factoring your Accounts Receivable Work?
Factoring accounts receivable is a popular business line of credit; the line of credit is secured by your receivables.
The age of your receivables make a huge impact on the underwriting decision of your loan. The older your receivables are, the less likely they can be accounted for the total value of your receivables, also known as factoring.
If your company has an outstanding large invoice or invoices owed by your client, the accounts receivable lender will advance on your outstanding invoice or invoices at a discounted amount. Furthermore, the invoice or invoices would be payable to the lender, not to your business. The remaining funds after the lender is paid will be returned to your business immediately.
Non Bank Business Line of Credit
Receive a non bank business line of credit with conforming rates, which all depends on your credit score. The higher your credit score is, the better terms and conditions you will receive from the lender.
“This type of financing helps companies free up capital that is stuck in accounts receivables.”
Whether you’re a small business or mid-size company, make the call and receive your free consultation, we do not take any upfront commercial broker fess for business and commercial loans.
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For more information on how we can best serve you locally in Fort Myers, Naples FL and Marco Island for your business line of credit, please fill out the online contact form about your concerns or give us a call at 239.260.4602 . Read what people have to say about First Pro Capital on our Testimonials page.
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