Factoring

Factoring helps small businesses get working capital by selling accounts receivable, or invoices. The goal is for your business to receive cash more quickly than waiting for customer payments. Factoring is not a business loan – it's the sale of an asset (the invoice). Rather, you sell your invoices in exchange for a lump sum of cash. The factoring company then owns the invoices and gets paid when it collects from your customers, typically in 30 to 90 days.

Freight factoring services through NuPoint Commercial Finance can help you spend more time keeping your trucks on the road and less time waiting for your invoices to be paid. Timing is critical in the freight industry, whether you’re waiting at a loading dock for a shipment or waiting for a payment from a customer.  We work hard to ensure that you get paid within hours of pick-up and delivery, without waiting weeks and months to be paid on your invoices.

Business owners in the construction industry rarely ever receive payments from their customers on time. If this situation is affecting your business, construction factoring can help. This arrangement, which is designed specifically for construction companies, allows you to receive most of your invoice value right away rather than waiting as much as two months to be paid. Construction factoring is available for businesses of all sizes, from the small contractor to the multi-million dollar commercial contractor.

When it comes to accounts receivable financing for the healthcare industry, there are two different kinds of companies that can benefit from what’s commonly referred to as healthcare factoring and/or medical factoring. The first type is a vendor who sells goods or provides services to the healthcare industry (medical transcription, nurse staffing, etc.) and the second is a provider that bills third-party payers like Medicare, Medicaid and insurance companies. However, both types of healthcare companies make ideal invoice factoring candidates because each routinely bills creditworthy slow-paying customers. With medical factoring, you’ll have the financial means to hire new staff, open new locations and expand your business however you see fit.

Also known as ‘single-invoice factoring,’ spot factoring allows your business to factor an invoice without entering into a long-term relationship with the factoring company once it’s paid. Traditional invoice factoring arrangements require your company to factor a minimum monthly or yearly amount– or at least, expect customers to factor with the factoring company on a regular basis. Spot factoring is a one-time transaction: you’ll receive an advance on a single invoice instead of committing to a factoring relationship.