What it is
One amount you take and pay back on the schedule in the agreement. Payments may leave the account daily, weekly, or monthly, depending on the product. Read that cadence, and the total you pay back, before you sign.
It is not a line of credit, and it is not equipment financing. A line is a limit you draw, repay, and draw again. Equipment financing is tied to an asset you keep.
Invoice factoring
Cash against invoices. Not a loan.
- Structure
- Invoices are purchased
- What matters
- Your customer's credit
- Cash comes from
- The invoice
Working capital
A lump you pay back.
- Structure
- Amount advanced to you
- What matters
- How the business runs
- Cash comes from
- The program
When it fits
The business is operating, the need has a size, and cash is tight this month. Payroll through a quiet stretch. Stock you can turn. A supplier who will not ship on terms. A repair that stops the week.
It does not fit a building, a truck you will still be using in five years, or a vague sense that you might need money later. Those belong on commercial real estate, equipment, or a line of credit.
What we need to start
Use of funds, the legal name of the business, roughly how much, and 3 to 6 months of business bank statements if you have them. Statements can follow.
What happens next
Submit one application. We package the file and send it to lenders that buy this kind of paper. Options appear in your account when they exist. Sometimes more than one, sometimes none. You compare terms there, pick an option if you want one, and still review that lender's agreement before you sign.