Benefits

Unlocking the cash tied up in your receivables gives you the working capital needed to take on bigger jobs. 

The company in the example below doubled its revenue and nearly tripled its net profit.

NOTE: The profit with factoring increased both from a dollar perspective and percentage – from $80,000 to $212,000; and 13% to 18% – respectively.  By investing $48,000 in factoring $600,000 of invoices (assumes $50,000 invoices pay in 60 days and a 4% per month fee), the net profit increases by $132,000. The client pays $4,000 per month to increase sales by $50,000 per month.  Gross profit increases by $50,000 * 30% = $15,000.  That’s a net profit increase of $11,000 per month.