Business Factors & Finance

Turning unpaid invoices into working capital

Business Factors & Finance is an invoice factoring company. Rather than lending, it buys a business's unpaid invoices at a small discount and advances cash against them, which the firm says adds no new debt and requires giving up no equity. It describes more than 40 years in receivables financing, a network of over 25 locations, and round-the-clock customer support. It says a new account can be funded in one to three business days, while established accounts can draw more quickly.

How an account is set up

A business sends its unpaid invoices, receives payment against them, and can track the account online. By submitting an accounts receivable aging report, the client lets the firm rate how strong its customers' payment records are and receive basic credit protection. The firm presents this as easier to qualify for than a bank facility, with low volume requirements, and notes that the proceeds can be reinvested in operations or marketing without the restrictions of a traditional loan.

The range of products

Beyond standard invoice factoring, the firm lists a long run of related products. Non-recourse and spot factoring, small business factoring and payroll factoring are among them, as are purchase order financing, asset-based lending, cash flow and revenue-based loans, startup funding, supply chain financing and plain working capital loans.

Industries it describes

Each sector has its own page, and the firm gives advance rates for several of them, which are its own figures.

• Trucking and freight: advances of up to 98 percent of freight bills and work tickets, for fleets and owner-operators covering fuel, insurance and maintenance.
• Staffing and payroll: high advance rates so labour providers can pay workers before clients settle.
• Oil and gas: funding for field crews, hauling, pipeline work and seismic surveying, usually within a few days.
• Government contracts: cash flow for suppliers waiting on slow public payment, with advance rates it puts between 80 and 93 percent.
• Manufacturing, fashion and apparel, technology and telecoms: funding for firms that face long net payment terms of 30, 60 or 90 days.
• Seafood distribution: factoring that relies on the clients' creditworthiness, which suits newer companies.

The firm also publishes short articles on topics such as meeting payroll and choosing a factoring company.

Business Factors & Finance buys unpaid invoices from businesses so they receive cash quickly instead of waiting for customers to pay. The company describes factoring as different from a loan, because it adds no new debt and no equity is given up. It says it has worked in receivables financing for more than 40 years.

Products and services

• Invoice factoring: advances cash against unpaid customer invoices.
• Freight bill factoring: funding for trucking firms covering fuel, insurance, maintenance and payroll.
• Payroll and staffing factoring: helps labour providers pay workers before clients settle.
• Purchase order financing: funds to fulfil large orders.
• Other working capital products: asset-based lending, cash flow loans and supply chain financing.

Who it works with

Industry pages cover oil and gas, fashion and apparel, information technology, government contracts, manufacturing, staffing and telecoms. Customer credit is assessed from an accounts receivable aging report, and new accounts are said to be funded within one to three business days.

Key facts

• Experience: more than 40 years in receivables financing
• Network: over 25 locations
• Support: round-the-clock customer service