CFR closed a new $750,000 factoring facility for a full-service inspection, engineering, and consulting company. We learned about this company from a banker referral source. Our new client is a start up operation with a large opportunity to provide engineering support for pipeline inspections; however, it lacked the capital to take on the new work. As with its other clients, CFR was able to underwrite the account debtor instead of the start up company to provide funding needed for growth.
How Does Factoring Work for a Start-up?
Factoring, also known as invoice buying or accounts receivable factoring, accelerates your cash flow. A factor does not underwrite the actual company for approval. Instead, approval is based on the company’s debtor’s ability to pay. Once approved, simply, sell your invoices to CFR. We advance a percentage of the invoice amount immediately and deliver the remaining balance to you (less a small CFR fee) when the debtor pays in full.