Commercial Factoring

Commercial Factoring for Companies of All Sizes

Commercial invoice factoring is an increasingly popular funding option for businesses of all sizes in need of ready cash for operating expenses and growth. Huge corporations – such as publicly traded apparel companies and furniture manufacturers – and small “mom-and-pop” businesses alike routinely factor some or all of their invoices. Whatever your size and annual revenue, you may also be able to benefit from the ability to turn the money sitting in your accounts receivable into working capital.

Commercial factoring is an alternative way for large, medium-sized, and small businesses to increase their cash flow quickly in return for their unpaid invoices. This allows companies to fund their operations without needing to wait for customers to pay their invoices. So long as your customers’ debts are typically paid within three months, you can sell your invoices at a percentage-based discount and get money flowing into your bank account, usually within one day.

This method of funding businesses, whether it’s to keep everything paid off or to be used as venture capital for your company, is becoming more popular as commercial bank loans become more scarce. Other businesses simply do not have the best credit history which makes them ineligible for loans or preferential interest rates. Factoring is an attractive alternative to traditional bank loans because it does not require anything except commercial invoices for debt held.

Cash Flow Concept Remains the Same Across Industries

Commercial factoring is different than invoice discounting or invoice selling. Aside from factoring invoices, businesses can also use invoices as collateral to obtain loans they may not otherwise be able to get or sell their transactions at a discount which alleviates the concern of having to buy back overdue invoices. These rates may be considerably higher than invoice factoring discounts which can start at under one percent. It really depends on personal preference and the creditworthiness of your customers as to which commercial factoring options will be ideal for your situation.

At any given time, Interstate Capital staff members are working with more than 1,000 businesses, ranging from companies with annual sales exceeding $50 million to small start-ups. Yet each business has its own story and its own expectations for growth. Whether the client is a one-truck motor carrier or a large temporary staffing agency, the commercial factoring programs work in a variety of industries built on business-to-business sales. Interstate Capital’s dedicated account managers specialize in different industries to better understand the different business models that their clients follow. Yet the cash flow solution is essentially the same for all. Clients receive money right away for products they have delivered or services they have provided instead of having to wait 30, 60, or even 90 days for their customers to pay.

In addition to the benefit of upfront funding for bills and payroll, manufacturers, wholesale distributors, staffing companies, transportation companies, and many other types of companies receive a number of benefits from Interstate Capital.

Additional benefits include:

  • Online credit checks of their customers and personal credit consultations
  • Invoice preparation, online storage, and mailing
  • Professional collections services
  • And much more!

Interstate Capital helps clients who want to save time and money while they are improving their cash flow and taking advantage of volume discounts, early payment discounts, and improved credit scores for their business. In addition to commercial factoring, Interstate Capital offers customized factoring programs for those who work on government contracts for federal, state, tribal, or municipal governments.

Take the next step! Commercial factoring is a risk-free, debt-free way to get increase your company’s cash flow and grow. For more information about commercial factoring click here to get started.

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