We offer an array of asset based lending (ABL) and financing solutions.
Waiting 30, 60, or even 90 days to get paid can put unnecessary pressure on your business. A/R Factoring converts outstanding invoices into immediate working capital, giving you faster access to the cash you’ve already earned. Instead of waiting for customers to pay, you can improve cash flow, meet payroll, purchase inventory, and take on new opportunities without adding traditional debt to your balance sheet.
A/R factoring is ideal for businesses that invoice other businesses on delayed customer payments that have a good customer base but not yet profitable. It’s commonly used by manufacturers, staffing companies, transportation providers, wholesalers, distributors, government contractors, and other businesses with long payment cycles.
Once you’re set-up, you will receive wire of up to 90% of qualified receivables. Upon issuance of new invoices, you can factor them with the A/R factoring facility for same-day capital. Because financing is tied to your receivables, available funding often grows as your sales increase. Businesses can use the proceeds to meet for any commercial use, but its best use to finance Purchase Orders, and often used in conjunction with a PO financing facility.
Not every factoring company specializes in the same industries, invoice sizes, or customer types. Capital Desk works with a nationwide network of factoring companies, banks, and specialty finance providers to identify the solution that best fits your business. We help structure the transaction, compare financing options, and guide the process from application through funding, giving you greater confidence that your facility is the right fit for your long-term growth.
We serve clients nationwide, and have delivered capital to 48 States, Puerto Rico, and Canada.
Since September, 2023, we’ve deployed $150M+ to clients across an array of industries.
A/R (accounts receivable) factoring is a method of commercial financing whereby you “sell” your good invoices that remain outstanding under normal payment terms. A/R Factoring is not for overdue or late receivables.
It works much like a traditional revolving business line of credit, except your customers pay the factoring company instead of you. You get 80-90% upfront, and then after your client pays the factor, the factor releases the remaining 80-90%, minus their fees.
Generally speaking, no. A/R Factoring is usually “non recourse” and structured as a “Purchase and Sale” – meaning you sell the invoice off of your balance sheet, entirely. However, in some instances (i.e. fraud), the transaction may be deemed “recourse”, meaning the “seller” or company would be liable for the payment, if the client never pays.
At a minimum, you need your customers to be credit worthy, meaning enterprise or very large customers (i.e. middle market). If you sell B2B to other small businesses, you will not qualify for A/R factoring. Profits are not required, but helpful in getting competitive approvals.