- AR Financing companies use 70-90% of face value of your companies qualified invoice to collateralize a line of credit. A collateral management fee (typically 1% to 2%) is charged against the outstanding amount, and when money is advanced, interest is assessed only on the amount of money actually borrowed.
- Factoring companies buy you outstanding receivables. Typically, the factor company will advance the business between 70% and 90% of the value of a receivable at the time it purchases the receivable. A factor fee which is typically 1.5% to 5.5%, depending on such aspects as the collection risk and how many days the funds are in use.
- Lease Pros offers both AR Financing and Factoring. Contact us to see which financial vehicles fits your company needs.