Factoring companies are commercial finance companies that specializes in the purchase of invoices for cash. Fees vary among factoring companies and from client to client. They are determined by a combination of your customer base creditworthiness, average payment cycle, invoice size and factoring volume.

Factoring companies provides over 100 billion dollars to businesses each year. In fact, it is a financial service that has been used for some time now by billion dollar corporations that is now finally available to smaller sized businesses to which banks are reluctant to lend funds. Factoring companies are filling the tremendous void that banks have created.

Basically, businesses sell their accounts receivable (invoices), representing money due from their customers to factoring companies, at a discount from face value so that it does not have to wait the normal 30-60 days for its accounts receivable to be paid. In short, factoring companies help businesses speed up their cash flow, thereby enabling them to more readily pay their current obligations and grow.

Many new and growing companies have trouble obtaining traditional bank financing due to their length of time in business, profitability or financial strength. Factoring companies allows these businesses to convert their accounts receivable into quick cash. Once you have delivered your product or service and generated an invoice, you can get your money in as little as 24 hrs. Factoring companies can help a business stay current with its vendors and stay on top of other financial obligations such as payroll and taxes.

Other types of financing generally require two years in business and that the business show a profit. Factoring companies do not have this limitation. Young, growing companies or those with tax liens and even bankruptcy can still qualify for factoring.

Sovereign Funding Group (SFG) only deals with the top industry factoring companies. SFG will get several factoring companies to compete for your business and you can decide at your leisure which offer is right for you. Whether you have used factoring before or this is your first time, SFG can make the process clear, simple, and understandable.

Taking the factoring plunge can be the difference between company survival and bankruptcy. In the end, using factoring can buy time to eventually qualify for a regular credit line from your bank. We hope that you choose Sovereign Funding Group to be your guide.

Feel free to contact us anytime for a free no-risk consultation toll-free at (877) 836-4661 or email us if you have any questions.