Accelerate cash flow with early access to funds tied up in accounts receivable.

Factoring Advantages

Accelerated payments and improved cash flow.

Fast approvals and scalable solutions.

Asset-based financing and no new debt.

Reduce the credit risk of taking on new clients.

Factoring Overview

Factoring takes your company’s outstanding accounts receivable and turns them into cash. You no longer have to wait 30, 60 or 90 days from the date of your invoice to get paid. Sell your AR to a factoring company and get the cash you’re owed today. When your customers are ready to pay, they pay the factor directly. After the factor recovers their pay, the rest gets forwarded to you.

Let’s say your customer owes $50,000 on their account, but has until next month to pay. Meanwhile, your expenses are adding up and you need new inventory for the next customer. Instead of scrambling to fill the gap, sell the $50,000 invoice to a factor and get paid right away. If the factor buys the invoice at 80%, you get $40,000 now. When the customer pays their bill, the factor takes their $40,000 plus a small fee and you get the rest. No AR hassle and no waiting.

How Factoring helps businesses

Factoring can help solve your immediate cash needs and eliminate the necessity of reminding your customers to pay again and again. It lets you move faster when you want to get ahead of the next order. That can mean stocking up on materials so you can take on a bigger client or paying the bills to keep staff happy. Factoring works on your schedule and doesn’t add debt to your balance sheet. You don’t need to pay the factor back unless your customer wants a return or refuses to pay. If that happens, the factor will work with you to find a payment option that works. Let us match you with a reliable factor who understands your industry. Our experience gives us the knowledge we need to find the best of the best so you don’t have to waste time when it comes to getting the cash you need when you need it.

Recently Funded:

Cleaning Service revolving factoring account $1.5m+ receivables annually

Our Services

You deserve straight forward, custom tailored financing solutions. And that is precisely what we deliver.


When your business relies on invoices to get paid, it can be weeks or months before you get what’s owed. That’s when it’s time to turn to a factor who can give you the money in just a few hours. Get what you need and keep your customers happy when you sell your AR to a factor.

Purchase Orders

Working with government contracts has its perks, but it also has its downsides. Often, you end up waiting while your purchase order works its way through the system. Instead of putting business on hold while your AR gets where it needs to go, sell it to a factor and get paid now.


If you do business with the same customers again and again, you can use your agreements to accelerate the flow of capital. Factoring lets you choose an individual invoice or an entire contract to sell, so you can offload your AR duties and focus your attention on earnings. We can show you how.


Q. Does a factor charge interest?
It depends on the factor you use, but many do charge interest. Interest charges are usually based on how long it takes your customer to satisfy their invoice. There can be several tiers and rates, so be sure to consult with a qualified broker before you decide.
Q. What if my customer wants a refund?
If your customer wants a return, a refund, or otherwise refuses to pay their account, you may have to work out a payment plan with your factor. Ask about the terms and conditions before you sell your AR so you’re not taken by surprise. We’ll help answer any questions you have.
Q. Where do my customer’s payments go?
After you sell your invoice, purchase order, or contract to a factor, they handle collecting payments from your customer. The customer sends payment directly to the factoring company. The factor collects their payment and forwards the remaining balance on to you.
Q. When is factoring not the right choice?
Factoring only works for businesses that use accounts receivable. If you get paid on delivery, factoring isn’t the right option for cash financing. Consider a line of credit, an SBA loan, or a hard money loan for your working capital needs. We can show you a range of options that fit with your budget.

Get the support and insight you need to take the right financing to move your business ahead.

SummitUp Capital can take you there.