Factoring Structures – Full Ledger (Full Turn) Factoring

If your business has a big customer base and lots of invoices, it can sometimes be easier – and more beneficial – to submit all customers and invoices for funding. This approach is often called Full Service or Full Turn factoring. Not only does it maximize your available funding, but it also cuts down on the internal work of tracking which invoices were sold and handling dual cash application.

Choosing between Full Turn Factoring and Selective Invoice Factoring usually comes down to first to cash need and second how much internal work you want to take on. Some business owners prefer to set up all their customers for factoring, rather than deal with the extra effort of separating factored and non-factored accounts. Let’s be honest – most business owners already wear plenty of hats. Handing off the accounts receivable management to a factoring company can free up time, reduce stress and increase accuracy  while keeping cash flow consistent.

Choosing between Full Turn Factoring and Selective Invoice Factoring often comes down to how much internal work you want to manage. Many business owners decide to factor all their customers simply to keep things clean and consistent – no extra tracking or confusion about which invoices were sold and which weren’t. Let’s be real, most business owners already have enough on their plates, and letting a factoring company handle the receivables professionally can be a big time-saver.

That said, Full Turn Factoring is often better for both the business and the factoring company for several reasons:

• Concentration: Submitting all your customers helps keep customer concentration lower, which reduces portfolio risk.
• Volume: Factors love volume. The more invoices you fund, the stronger your relationship – and often, the lower your discount rate.
• Advance Rate: With a broader mix of customers, there’s less risk for the factor, which can translate into higher advance rates for you.
• Verifications: A wider customer base spreads out verification calls, reducing dependency on just a few accounts.
• Cash Application: Factoring companies use sophisticated software, so when you handle cash posting on your end, their detailed reports make it quick and easy for your staff to stay in sync.

In short, Full Turn Factoring keeps your operation simple, efficient, and scalable – while giving you more funding power and smoother cash flow.