Commercial Service Factoring - Get Cash Flow Financing Fast
Running on Empty...
When Power Renovations needed timely and reliable working capital, they turned to Gateway Commercial Finance. Power Renovations is a specialist in Canopy & Fuel Island repair and restoration serving gas stations nationwide. "In the spring and summer months, we're especially busy in the northern states and this year we landed a major contract with more than 200 locations.
We're only three years old and our bank was not able to help us with the cash demands of per diem, travel and payroll. We needed a solution to deliver on our contact." Power Renovations turned to Gateway to increase liquidity, ensuring payroll and other day-to-day operating needs were covered."We were impressed with how fast they put things together for us and with no hurdles. We're looking forward to a great season of work... without worrying about our cash situation."
...Let us top off your cash flow!
Service Factoring Provides Cash Flow Financing Even in Times of Crisis
When a small business or entrepreneur suddenly takes on contracts that can grow the company, the availability of working capital is extremely important.
A service provider has a long list of ongoing expenses that need to be covered immediately. Unfortunately, payments from customers do not come that fast. Most commercial businesses have to provide their clients, especially to large companies, at least one or two months of credit terms. This leaves them in a complicated situation dealing with working capital financing issues while waiting to receive their money.
There is no time to deal with the red tape that is associated with getting working capital from a traditional lender. A cash flow financing solution that can quickly take advantage of the receivables newly generated is the key to survival and success.
When to Get a Bank Loan?
Banks are an excellent option when your management team does not need funding right away. Traditional financing services also have several requirements that most entrepreneurs or startups cannot fulfill. These musts typically include a great credit score, strong financial information, and the ability to provide personal guarantees.
When a new contract requires immediate financial help to support operations your best option will likely come from a factoring company and the invoices that you are waiting to collect.
If you b2b company does not have the resources required to get a bank loan or a line of credit, factoring services may be your best chance at accessing steady capital.
Our commercial service factoring company can work with you to set up your factoring account in only a few business days. Once your account is set up, we can process receivables right away and provide you cash flow regularly to support your growing operations.
Let’s learn more about service factoring
By definition, factoring is the sale of your business’ outstanding invoices at a discount.
Factoring helps shorten the billing cycle of service providers that normally give their customers 30 to 90-day terms to pay. Factoring provides a quick working capital boost. The reliable cash flow that factoring delivers can be used to purchase supplies or pay any type of operating costs. It’s also commonly used for payroll funding.
Invoice factoring is not a loan. If your debtor pays the full amount when it is due, there’s no liability from your part. If the receivable becomes delinquent the factor will charge-back the amount advanced to you unless you have a non-recourse factoring agreement and credit protection insurance.
Stop waiting for collections to unlock your capital. Take advantage of all the benefits that invoice factoring offers.
Factoring provides working capital to large and small businesses in a wide variety of industries such as:
- Janitorial & cleaning
- Pest control
- Repairs & maintenance
- Security guard services
- Professional services (e.g. management & accounting firms)
- Public relations & advertising agencies
- Manufacturing engineering
- Trucking & freight
- Staffing agencies
- Government contracts
- And many other service providers.
The factoring process is pretty simple
Step one – Provide the services and bill your customers giving them 30 to 90-day payment terms.
Step two – Submit the receivables to your factor. Once the invoice is approved and verified the factor will advance you a large percentage of the invoice’s face value (average 80 to 90%).
Step three– When the debtor pays, the factor discounts the money advanced deducts the factoring fees and transfers the remainder to your bank account. That easy!
About the cost of invoice factoring
You will pay two types of factoring fees to unlock the capital trapped in your invoiced sales:
- Financing fees calculated by multiplying the invoice value by pre-agreed rate. Rates usually go from 1 to 3% per month.
- Administrative costs, not based on the money received, such as wire and mailing fees.
Please request a quote to know the specific financial terms for your company.
Benefits of working with our factoring company
- We are an awarded commercial finance organization. Our team of factoring experts has been providing funding for over 13 years.
- Our managing director can approve new applications and issue factoring proposals in just a few hours (sometimes even less than an hour).
- We are a full-service factoring company, we help customers to control cash flow, evaluate credit risk, perform collections monitoring and manage receivables to avoid bad debt.
- When available for your industry you can choose between recourse and non-recourse factoring services. In the case of non-recourse factoring, we can obtain credit protection services for your customers.
- Our office headquarters are located in sunny South Florida but we efficiently serve clients nationwide through our team of factoring brokers and expert specialized staff.
- You can read customer testimonials here.
- There are several easy ways to get in touch with our office; you can call our toll-free phone number 1-855-424-2955, talk to our managing director using the Chatbot available in all pages during business hours, or email us using our factoring form.
- Technology oriented prospects can easily submit factoring applications online. Users of QuickBooks Online software can apply for factoring in less than 10 minutes.
- All our customers have a private client login area containing a factoring software that helps manage cash flow and access the status of factoring transactions 24/7.
You shouldn't have to worry about taking on large contracts when you run a small business. With the help of our factoring company, we will make sure that you have the ongoing cash flow you need to meet your weekly payroll and other obligations.
Get a quote now to get started!
How to get started with factoring
To know if you qualify for factoring with us please send a factoring quote request. Our managing director will be back at your immediately with an application and custom proposal terms.
You can learn more about the typical requirements to qualify for invoice factoring here.
Service factoring FAQ
What can the factoring proceeds be used for?
There are no limitations to the use of funds. Your business can use the working capital that your factor provides to pay for ongoing expenses such as rent, utilities, vehicle repair, tolls, fuel, materials to fulfill orders, employee payroll, miscellaneous vendor bills, etc.
Is receivable factoring the same as receivable financing?
Receivable financing (a.k.a. invoice financing) is an asset-based loan that uses your invoices as collateral.
Receivable factoring is not a loan. It does not add debt to your ledgers and does not require monthly payments to the factor from your part.
Author Marc J Marin
Information for factoring brokers
We are an established factoring firm with a very high client retention rate. We have special programs for brokers and other referral partners that would like to refer companies in need of reliable working capital. Please read the articles below for program information, call 561-734-2706 or contact us at any time to get started: