Supply Chain Finance Factoring

SUPPLY CHAIN FINANCE

Factoring fees as low as 1-2%
Competitive advances
Fast funding
Spot factoring OK

Manufacturers and distributors can use supply chain factoring to unlock working capital tied up in customer invoices – instead of waiting 30-60-90+ days for customers to pay.

Get a quote for supply chain financing with same day funding, low factoring fees and high advances, and a flexible program tailored to the unique needs of your business.

Get a Free Quote

1. Apply

Apply and we’ll connect you with a factoring company based on your goals and preferences.

Factor Invoices

Go from approval to your first funding in as little as 24-48 hours — or even faster.

3. Speed Up Cash Flow

Get free same day advances on factored invoices to expedite cash flow and grow your business faster.

Supply chain finance: Speed up cash flow and grow faster by factoring invoices instead of chasing customer payments.

Supply Chain Financing

How It Works

What supply chain finance is and how it works

Supply chain financing is accomplished through invoice factoring. Supply chain factoring is a debt-free financing option where a manufacturer, distributor, supplier, or business that services industrial customers sells accounts receivable invoices to a factoring company instead of waiting weeks or months chasing customer payments.

The factoring company provides an advance of up to 98% of the invoice amount right away. This enables faster reinvestment in a business, in turn, offering faster potential for business growth.

If your business sells on terms (net 30, etc.) to another organization, you may be able to unlock the working capital represented in unpaid customer invoices on the same day they are generated. Instead of waiting on customer payments, factor the invoice (sell it to a supply chain factoring company) and receive payment as soon as the same or next business day for a small fee, called a factoring fee. Your factoring fee could be as low as 1-2%; however, factoring fees often range from 2-7%.

Invoices factored are typically funded on the same day – up to 98% of the face value of the invoice, with any remainder (called a holdback, or reserve) placed in ‘reserve.’ For instance, let’s say that you are billing a customer in the amount of $67,000 but you want to access the funds without waiting weeks – or months – for your customer to pay.

Assuming a factoring fee of 2%, and an advance rate of 98%, here’s how it would work:

Day 1 –	Generate $67,000 customer invoice and factor it
– Same Day	Receive 98% advance of $65,660 by wire transfer or ACH on the same/next business day
	Factoring company earns 2% factoring fee, which they receive once the customer pays the invoice

Invoice Factoring Calculator

Invoice factoring calculator

Manufacturers and distributors who want to find out how much money they might be able to unlock by factoring invoices can enter the average amount of a customer invoice, total monthly sales, or the amount of their average monthly earnings statements.

The invoice factoring calculator shows you the amount of working capital that might be available to your company right away and give you a representation of what your advance and factoring fee could be with this type of supply chain finance. To get a free, no-obligation quote, apply online or complete one of our quick quote forms and we will connect you with a top supply chain factoring company right away.

Supply Chain Financing vs Factoring

Supply chain financing vs factoring

Supply chain financing could be any type of financial program available to a manufacturer, distributor, supplier, vendor, or a service business with industrial customers. This includes bank loans, lines of credit, credit cards, investors, invoice factoring, purchase order discounting, and so on.

Receivables invoice factoring is available to nearly any type of manufacturer or distributor (and other supply chain companies). It provides immediate access to money owed by customers as early as the same day an invoice is generated.

Instead of waiting for customers to pay, you can factor (or sell) an invoice to a supply chain factoring company for a small fee and receive an immediate advance, which could be up to 98% of the invoice amount. Though the need for expedited or more consistent cash flow is the reason most companies decide to factor invoices, some of the other common reasons include:

Need for working capital to fuel business growth
To leverage working capital for better terms with suppliers
To offer customers generous payment terms as a competitive advantage
The need for working capital to take on larger accounts or big orders
Slow-paying customers
Better ability to meet operating expenses and payroll
For capital expenditures like equipment purchases, repairs, renovation or expansion

The practice of invoice factoring has played an important role as a means of supply chain finance for centuries. Any organization, of any size, that provides goods or services to other businesses, government agencies or other commercial organizations on payment terms may be able to factor receivables in order to improve cash flow and unlock working capital.

Benefits of Factoring

What are the benefits of invoice factoring for manufacturers and distributors?

Supply chain businesses (manufacturers, distributors, logistics companies, suppliers, etc.) that want to expedite payment of accounts receivable invoices can turn to a receivables financing company. Instead of waiting on customer payments, supply chain businesses can factor a customer invoice on the same day it’s generated and receive an advance of up to 98 percent of the face amount of the invoice right away.

Factoring receivables enables supply chain companies to focus on running and growing business rather than chasing invoices or performing collections. It gives you immediate access to working capital by speeding up cash flow so you can reinvest in your company much more quickly.

Factoring receivables could also be the key to positioning your supply chain business to be able to take advantage of emerging opportunities. Expedited cash flow gives you more flexibility to meet operational expenses, extend more generous payment terms to your customers as a competitive advantage, and reinvest in your business faster — to expand, service larger accounts, or take on new customers. It is also common to use receivables financing as a payroll loan, and this is sometimes referred to as factoring payroll loans.

Low Fees and High Advances

Supply chain finance factoring rates as low as 1-2% with high advances

We work with some of the best supply chain financing companies. They offer some of the lowest invoice factoring fees and highest advance rates in the industry, but that’s not the only reason you should apply for factoring services through us.

You want a supply chain factoring company that’s going to help you go from approval to funding quickly and look for reasons to say “Yes!” when you submit invoices for factoring. We can help you find invoice factoring programs with low factoring fees and flexible terms, such as:

Fees starting at 1-2% and advances as high as 98%
Fast funding
No long term contracts
No monthly minimums (you choose when and how much to factor)
Retain control of billing your customers or task it to the Factor
Free credit checks on your customers
No application or due diligence fees
No schedule processing, notification or any other hidden fees

Even more importantly, we work with factoring companies that deliver a high level of customer service. We want you to work with a financing partner who understands your preferences and unique business needs, saving time and reducing the stress of managing receivables.

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Supply Chain Finance – Industries Served

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Supply chain factoring clients come from many different industries where invoice factoring is (or can be) used to expedite cash flow on a regular basis, including:

Manufacturers
Distributors
3^rd party ecommerce vendors and online sellers (Zulily, eBay, Walmart, Amazon, Wayfair, etc.)
Suppliers and vendors selling through Costco, Sams Club, Walmart, and other mass retailers
Textile, clothing, apparel, accessories and other wholesalers
Ecommerce sellers – goods or services
App developers
Hops growers and vineyards
Wineries, breweries, and distilleries
Food and beverage distributors
Food and beverage processing companies

And others – feel free to ask! Nearly any type of company that invoices customers for payment or waits more than 15 days or more to get paid after completing delivery of goods or fulfillment of services might be able to improve cash flow immediately by factoring invoices. Take the first step and request a no-cost, no-obligation receivables financing proposal today.