This financing tool is not for every situation, here are a few examples;
– Invoice factoring companies cannot provide up-front or operating capital to open a restaurant.
– An invoice factoring company cannot fund any type of retail store that sells to everyday public consumers.
– Loan situations related to real estate property are unavailable for invoice factoring.
– Sales agents or people looking for an advance of future commissions from sales – there are a few specialty finance companies who will, 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 until they actually can produce an invoice
– Factors do not cash out annual contracts (funding today for monthly payments that will be collected over the next year)
– No equipment financing, no inventory financing, no proforma or pre-billing
– And invoice factoring companies will definitely not pay to help a relative of a deposed government official from a foreign land.