RECOURSE Factoring

Recourse factoring typically offers higher advances, more flexible credit requirements and straightforward pricing, giving companies the working capital they need, when they need it.

 

LEIGH LONES

SVP, Director of
Recourse Factoring

BRIAN GAGEL

SVP, Recourse Factoring
Portfolio Manager

 
 

WHY RECOURSE FACTORING?

  • Fast, simple and flexible funding option that accelerates the cash cycle when cash payments/outflows don’t match invoice terms

  • Speed to close (days, not weeks)

  • Access to credit and collection support as well as payment processing

  • No financial covenants; focus on quality of accounts receivable vs. historical financial performance

  • Seamless online process with 24/7 account access

 

WHO CAN BENEFIT FROM FACTORING?

Recourse factoring is ideal for young, growing service businesses and light manufacturing or assembly companies that cannot qualify for bank financing due to age or losses. It is an excellent alternative to bank financing for start-ups, turnarounds and companies that are not yet profitable due to rapid growth.

 
 

Staffing

Consulting

Janitorial

Landscaping

Manufacturing

Logistics

Maintenance

Management

Distribution

 
 

RECOURSE VS. NON-RECOURSE FACTORING

  • Funding is based on the face value of the invoices and verification of delivery and

    acceptance of the goods or service

  • Forms of verification include vendor portals, telephoning, written and full back-up

  • Invoice eligibility for advance or funding based on invoice date (with invoices typically ineligible 90 days from invoice date)

  • Pricing: either discount-based on the face value of the invoice (flat fee) or a one-time admin fee on face value of the invoice and Prime + on net funds employed

 

OUR PARAMETERS

  • Facility size: $500,000 to $10 million (with ability to transition from recourse factoring to ABL)

  • Advance rates A/R up to 90%

  • Term: starting at 12 months

We want to hear from you