Discount factoring, also known as recourse factoring, provides your business with flexible and immediate cash that will give you the opportunity to grow, restructure, take advantage of supplier discounts through volume purchases or early payments, or even to fund payroll. Many companies need additional cash flow to support seasonal demands, growth, and more. Discount factoring is a widely accepted method of business financing in use by many large well-known companies. It is less expensive than traditional factoring, but, like traditional factoring, it is less restrictive than equity financing, allows you to access cash without having to give up company share, and gives you daily and weekly access to your eligible availability when you request it. Discount factoring can also increase and decrease based on your current business size and needs, and allows you to gain administrative support to manage your receivables without additional staff.
How Discount Factoring Works
As an experienced discount factoring lender, Crestmark is able to help companies with a variety of working capital needs. Our relationship with your business starts when we create an agreement between you and Crestmark. This agreement will set out the terms that will be used in the forthcoming invoice. Make sure to get in touch with us before invoicing – we like to establish our relationship as your recourse factoring lender before any invoicing has been conducted.
Once that agreement is in place, send out the invoice to your customer. Depending on the terms of your agreement with us, we may just need a copy of the invoice. If you require a more full-service discount factoring lender, in some cases we may do the invoicing for you. You can expect to see up to 90% of the eligible funds from the invoice immediately. Once your customer has paid, you’ll receive the rest. We retain a small administrative fee to cover our expenses for interacting with your client and arranging payment details. We offer a web-based information portal, allowing you to sign in and check the status of payment on your orders 24 hours a day, seven days a week.
We will handle all the details of processing the payment, including working with your client to ensure timely payment. Our experienced staff will help streamline your accounts receivable process, providing a steady stream of capital as expected. You’ll also discover that this kind of arrangement has the added benefit of increasing communication with customers, providing faster feedback on lost or damaged orders or other problems.
Our discount factoring solutions can grow or be reduced as your business needs. We will work with you in a lasting partnership to provide you with the capital you need when you need it.
Discount / Recourse Factoring Highlights
|Primary Transaction Size||Start-ups to $7.5 Million|
|Business Credit Type||A/R Invoice Financing|
|Advance Formula||Up to 90% of eligible Accounts Receivable|
|Advance Frequency||Weekly (or as often as daily)|
|Services||Customer investigation and approval
Accounts receivable bookkeeping
|Discount Factoring Benefits||Flexible, can grow as your business grows, and can reduce when you choose
Easy to transition back to conventional banking
Pay off loans, make payroll without worry
Meet seasonal demands
Reinvest in business; fund marketing to grow your business
Receivables management allows you to focus on your core business
Take advantage of purchase discounts with volume or early payment
|Crestmark’s Discount Factoring Benefits||Competitive pricing
Fast response time:
Proposal turnaround within one day
Closing in as early as one week
Cash for invoices within 24 hours
Is Discount Factoring / Recourse Factoring The Right Solution For Your Business?
Your business is unique and you need a funding solution as individualized as you are. Our professional, experienced Business Development Officers will work with you to understand what best fits your business and cash flow needs, and a team of financing specialists will create a working capital solution specialized for you.