Product Cinergy Commercial Capital
In contrast to a revolver, factoring means the accounts receivable are actually sold to a factoring company for cash. Depending on the credit quality if its customer and the concentration of the customer base, the company will receive 75% to 90% of the invoices’ face value within a day or two of sending the invoice. Once the factor collects, the company receives the remainder back minus fees and interest rates.
The minimum line of credit is $50,000.
Usually requires a personal guarantee of everyone holding 20% or more of the company.
This product may be available to international clients, depending on the country (Call if you have an opportunity outside theU.S.)
Target Clients
Factoring is typically used by B2B companies with less-than-perfect credit, companies in transition or possibly in a startup mode. Interest rates and fees on these types of loans are generally higher than revolvers. AR Factoring is often an 18-24 month bridge financing vehicle which allows a company to grow to consistent profitability which in turn qualifies them for less expensive capital such as a revolver or an unsecured bank line.
Clients can be in virtually any industry.
Pricing
Pricing ranges from 1% per month for higher credit quality companies with the highest credit quality customers (such as the U.S. Government or AA/AAA rated corporations) to 3.5% per month for more challenged customers.
Cinergy Commercial Capital 