What is factoring?
No hidden fees
No Fine Print
No bad surprises
A simple, cost-effective flat-fee structure
Factoring companies often use variable fee structures to calculate rates. This means that they discount a small percentage (usually 3% to 15%) of the invoice for as long as it remains unpaid. The longer your customer takes to pay, the more fees you’ll incur.
F4C offers a flat fee structure where a one-time fee is charged upfront, regardless of how long the invoice remains open.
A Path to Better Credit
Factoring of invoices isn’t a loan, so you can receive cash without adding a new line of debt to your balance sheet. If your company has poor or not yet established credit, you can use factoring to pay down your other outstanding expenses and reestablish a strong credit rating.
A tool for your company's growth
Invoice factoring addresses the growth and operation of businesses by providing a means to overcome cash flow gaps. These gaps, caused by slow customer payments, can restrict the growth or operation of a business. By accessing immediate funding through invoice factoring, businesses can ensure a steady cash flow and financial resources.
Frequently asked questions
Find answers to your questions about factoring.
How long does it take to set up with a Factoring company?
With F4C, once your application is completed and all paperwork is submitted, you can set up an account and get funded within the same day.
How many invoices do I have to factor at once?
This varies with the individual firm. Some may require factoring all invoices per month while other firms will allow you to select which ones to use. F4C allows you to choose what customers you want to factor.
What is the duration of a factoring contract?
Each factoring company has different contractual arrangements. Most require a commitment of 6 to 12 months. F4C offers a monthly formula after the initial 90-day period.
How do customers perceive sending payments to a factoring company?
Most companies are now very familiar with factoring companies, but if this is an issue for you, you should discuss it with the factor. They are used to working directly with customers on this issue and most will be very comfortable explaining the process. If you’re talking directly to your customer, a simple, straightforward explanation is usually the best approach.
What happens if a customer sends a payment to my company instead of my factoring company?
The funds should be immediately forwarded to the factoring company.
What size of company is factoring for?
Business Factors provides Invoice Factoring Services for businesses of just about every size, including startups, small- to medium-sized businesses and large corporations. F4C can provide Account Receivables Factoring for as little as $10,000 per month.
All you need to know about factoring
Read our articles to find out all about factoring.
