Entrepreneurship & Small Business

Recommendation for Invoice Factoring Company?

  • Last Updated:
  • May 30th, 2018 10:04 pm
Jr. Member
Apr 12, 2004
128 posts

Recommendation for Invoice Factoring Company?

Our company is looking to get more liquidity and so I'm wondering if anyone has any experience with an Invoice Factorying company?

I have a short list from our accountant but looking for any recommendations based on actual past experience.

4 replies
Jr. Member
May 21, 2015
125 posts
I talked to one during a franchise show. wanted 20% basically and will deduct daily a small amount. They offered 9 and 12 months of financing.
Deal Guru
Aug 2, 2010
14309 posts
Here 'n There
Fundthrough's and all factoring company's interest rates are ridiculously high. You can get a much lower rate with a personal credit line from a bank like simplii.com (they gave me about $50K @ prime + 2% unsecured when I opened my account over 20 years ago when they were PC Financial but YMMV), a HELOC, or even taking advantage of the 0%/1% 6-12 month credit card no interest balance transfers (that can just be a transferred to your bank account). Of course with multiple shareholders you'd want everyone's loan-in contribution to be proportional to their respective shareholding. Another option is to just give a discount to your customers for paying early. However, many customers have cash flow issues too.

Factoring companies should be a very last ditch solution.
Jul 10, 2012
14 posts
1 upvote
Bibby financial. Keep in mind, invoice financing is off balance sheet. Which means you can apply for conventional financing, or if you already have conventional financing, you will not be breaching your covenants. I believe that Bibby will give you up to 90% of invoice, and your fee is only about 2%. Assuming that your invoice is b2b.