Factoring companies provide business financing by making advances on your creditworthy commercial (non-consumer) customer invoices. That’s it. An invoice is defined as a product or service work that has been completed (100%) and accepted as due by the customer.
– Factors cannot provide capital to open a restaurant
– Can’t help with any type of retail store that sells to consumers
– All situations related to real estate property are unavailable for factoring
– If you are an agent or broker who wants money in advance of commissions – there are a few specialty places that do that, but generally commissions are not “invoices.”
– Start-ups who have a new contract but need up-front money to get it going will not qualify
– Factors don’t cash out annual contracts (money today for funds that will be collected over the next year)
– No equipment, no inventory, no proforma or pre-billing
– And we definitely cannot pay to help a relative of a deposed government official from a foreign land.