| Factoring: Quick, Flexible Funding Factoring: Quick, Flexible Funding – Accounts Receivable Factoring can quickly meet the working capital needs of manufacturers. Our underwriting focus is solely on the quality of a company’s accounts receivable, which enables us to rapidly fund businesses which do not qualify for traditional lending.  Program Overview $100,000 to $10 Million Non-recourse Flexible Term Ideal for businesses with strong customers We fund challenging deals: Start-ups Losses Highly Leveraged Customer Concentrations Weak Personal Credit Character Issues In about a week, we can advance against accounts receivable to qualified businesses. Contact me today to learn how your client would benefit.  Chris Lehnes 203-664-1535 clehnes@chrislehnes.com Connect on LinkedIn |
Factoring can be a great financing solution for manufacturers who need quick and flexible access to cash. Instead of waiting 30, 60, or even 90 days for customers to pay their invoices, manufacturers can sell those invoices to a factoring company for immediate working capital.
How Factoring Works for Manufacturers
- Invoice Your Customers – Provide goods or services to your customers as usual and issue invoices.
- Sell Your Invoices – Sell those unpaid invoices to a factoring company at a discount.
- Receive Immediate Cash – The factoring company advances a percentage (usually 80-90%) of the invoice value upfront.
- Customer Pays the Factor – Your customer pays the factoring company directly when the invoice is due.
- Receive the Remainder – Once your customer pays, you receive the remaining balance minus the factor’s fee.
Why Manufacturers Use Factoring
- Fast Cash Flow – Get funds within 24-48 hours to cover payroll, materials, and other expenses.
- No New Debt – Factoring is not a loan; it’s leveraging your receivables for immediate funding.
- Flexible & Scalable – Funding grows with your sales; the more invoices you generate, the more working capital you can access.
- Credit-Based Approval – Factoring companies focus on your customers’ creditworthiness rather than your own, making it accessible even for businesses with limited credit history.
Is Factoring Right for Your Manufacturing Business?
If slow-paying customers are straining your cash flow, factoring could be an excellent solution. It allows manufacturers to keep production running smoothly without waiting for payments.
Would you like help finding the right factoring partner for your business? Contact Factoring Specialist, Chris Lehnes