Have a question about the factoring process and how it can help your business? We’ve compiled a list of brief answers to the questions we hear most often.
If you have another question or are interested in learning about our factoring process in more detail, please don’t hesitate to fill out our on-site form or call us at 888-652-8298.
Factoring is the discounted purchase of a business’s accounts receivable due from another business of the government.
Unlike banks, which rely on the financial strength of the client, factoring relies on the creditworthiness and financial strength of the account debtors.
Millennium Funding does not loan money, instead we purchase the accounts receivable for a discount, providing you a line of credit based on the money you are waiting on.
There are a wide variety of reasons companies choose factoring, most of which are related to growth or survival. Some of the most common reasons to factor include:
Create new markets
Hire new employees
Fulfill large orders
Cash and volume discounts
Unrestricted use of funds
Debt free financing
Maintain credit rating
Common obstacles to funding include:
Poor debtor credit
Liens on the A/R
Non assignable invoice payments
Inability to verify invoices
If you have facing one or more of these funding obstacles, please reach out to us to see what we can do to help.