What are Factoring Loans?

Factoring Loans / Accounts Receivable Financing

Factoring loans are a special transaction in which a business or company sells its invoices to a third party (known as a factor) at a discounted price. Also known as "accounts receivable financing", it's used to acquire revenue more quickly than waiting for the customer to pay.

Factoring Loans are Ideal For:

• Immediate Cash Flow
• New Equipment Purchases
• Inventory Costs
• Company Expansion

One of the great things about factoring is that it can be used by all companies and organizations. Whether you run a small business as a sole proprietor or a Fortune 500 corporation, you can use factoring to acquire working capital more quickly than waiting for a customer or client to pay.

Need a Factoring Loan? We have built solid relationships with both funding sources and borrowers over the years who count on Intrepid Private Capital Group for their funding needs. With Intrepid, your project will have exclusive access to a network of motivated lenders who can get you the funding that you need quickly and with no hassle.

Factoring works like this: a company sells a product or service to a customer. Instead of waiting for the customer to pay, however, the company sells the invoice to a third-party (the factor) at a discounted price. Upon collecting the customer's payment, the factor reimburses the company the difference it paid minus a fee. It's a win-win for both the factor and the company. The company receives the payment more quickly, and the factor generates revenue from the customer's payment.

There are typically three parties who are directly involved in a factoring loan transaction:

• The Factor - party who purchases the receivable.
• The Seller - party who sells the receivable.
• The Debtor - party who is bound by the terms to pay the owner listed on the      invoice.

In a typical factoring loan transaction, the following four components are recorded by an accountant:

• Fee paid to the factor.
• Interest paid to the factor.
• Bad debt expense.
• Holdback/Reserve (used as insurance to cover returns, refunds, charge-backs, etc.).

For more information on obtaining a Factoring Loan, financing accounts receivable, or any questions regarding our funding process, feel free to Contact Us. To begin a funding application, simply follow the "Apply Now" link to get started. Let Intrepid Private Capital Group be your partner in making the right decisions and help you get the private funding that you need for your business or project.

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