Small business factoring enables companies to finance their invoices and improve their cash flow. It provides funds to pay employees, suppliers, and other company expenses. More importantly, it provides a stable financial base that supports future growth.
This solution is different from conventional factoring. It’s designed for startups, self-employed individuals, and small companies that invoice less than $30,000 monthly.
Commercial Capital LLC works with small business owners and offers financing at competitive rates. For an instant quote, fill out this form. Call us toll-free at (877) 300 3258 to speak to an expert.
Small businesses are different
When Commercial Capital LLC started over 20 years ago, we specialized in small business factoring. We understand the small business market and know it is very different from other markets.
Small companies and self-employed individuals may have unpredictable revenues and cannot commit to minimums. They also don’t have the resources of larger companies and should not be expected to. We have adapted our processes to ensure that you – the small business owner – get the financing you need.
How does factoring work?
Invoices are financed in two installments. The first installment is called the advance. It is deposited to your account as soon as the work is completed and you submit an invoice for processing.
The first installment covers about 80% of the gross value of the invoice. It provides most of the working capital benefits of using factoring. The second installment covers the remaining 20%, less the factoring fee. It is deposited into your bank account once your client pays their invoice. This installment settles the transaction.
You can learn more by reading “How Does Factoring Work?”
A high advance is essential to most companies. This funding provides most of the cash flow benefit from factoring. Our average advances range from 80% to 90%. These percentages vary based on industry and client risk profile.
Simple qualification criteria
Small business factoring has simple qualification criteria. To qualify, the business must:
- Have creditworthy clients
- Invoice on net-30 to net-60 terms
- Not be a sole-proprietorship
- Not have serious tax/legal issues
We offer competitive rates and high advances. For an instant quote, fill out this form. Call us toll-free at (877) 300 3258 to speak to an expert.
Factoring your invoices has several advantages that can help small business owners. A factoring program:
- Improves cash flow quickly
- Allows you to offer 30-day terms
- Grows with your business
- Is easy to get
- Can be deployed quickly
We work with small companies
Our small business factoring program helps companies that invoice less than $30,000 monthly. These clients include self-employed individuals and companies with a couple of employees. In our opinion, this market segment is underserved by the factoring industry.
Companies that invoice more than $30,000 monthly should consider our conventional invoice factoring program.
Get funded quickly
Most transactions can get funded in a week or so. You have a better chance of getting funded quickly if:
- You submit a complete application
- Your clients have good commercial credit
- There are no major issues
For more information, read our factoring application tips.
Evaluating factoring companies
Partnering with the right factoring company can be important to the success of your small business. Consider asking these questions to potential partners as you go through your due diligence process.
1. How long have you been in business?
You are usually better off with a factoring company that has been around for a few years. Ideally, they should have been around long enough to go through a recession or two. Longevity shows they have seasoned talent that knows how to manage a portfolio during difficult times.
2. What is the size of your largest/smallest client?
Most factoring companies advertise a wide range of supported volumes. Ask about the size of their smallest and largest clients. This information helps you understand the position your company will have in its portfolio.
3. What percentage of your portfolio is companies under $30,000?
You want to know what percentage of their portfolio represents small companies. You will likely be better serviced by a company whose portfolio has a large percentage of small businesses.
4. Do you offer short-term contracts?
Your company should use factoring to solve a specific problem. Factoring use should stop once the situation is stable, and the problem is solved. Consequently, you are better off with a company that offers short-term contracts.
Want to learn more about our program?
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