What is wholesale factoring?
Wholesale factoring is a form of accounts receivable financing that allows wholesale distributors to convert outstanding invoices into immediate working capital. Do you have customers that take 60 days or more to pay invoices? Are these slow-paying customers limiting your business growth?
Growth Capital’s wholesale factoring program can get your invoices paid today. We finance your receivables, giving you access to cash that can be used to meet on-going customer demands and operating costs. Growth Capital understands that payment delays are a major issue impacting the wholesale industry.
Many wholesale distributors have to wait 30–120 days to receive payment due to long cash flow cycles and lengthy payment terms. Our wholesale factoring program effectively eliminates this waiting period. Send Growth Capital your invoices to receive the funds you need to run and grow your business.
How does it work?
Wholesale factoring is designed specifically to help companies better manage their cash flow. This financial transaction occurs when a wholesale distributor sells its outstanding invoices at a discount to a factoring company. The factoring company processes the invoices and sends an advance to the wholesale distributor immediately. The influx of funds instantly improves cash flow for the wholesale distributor.
A factoring company typically funds the receivables in 2 installments: the advance and the rebate.
The first installment is the factoring advance, which is calculated as a percentage of the face value of the invoice factored based on a predetermined rate.
The second installment is the rebate of the remaining balance minus the factoring fee, and is given after collecting payment from the customer. Once the customer has paid the invoice in full, the transaction ends.
How do I qualify for wholesale factoring?
For many wholesale distributors, it is much easier to qualify for factoring than conventional bank financing. Growth Capital’s wholesale factoring program caters to all kinds of businesses regardless of size, age, and credit history. Getting approval for wholesale factoring is mainly based on the creditworthiness of your customers.
Working with large and reputable customers generally leads to lower factoring fees. Oher qualification requirements for wholesale factoring are: invoices to be factored must be free of liens, and your business must not have serious tax or legal issues. If you fulfill these requirements, you may qualify for wholesale factoring at Growth Capital.
Benefits of wholesale factoring
Growth Capital delivers top-quality factoring services to wholesale businesses. Our wholesale factoring program offers a range of benefits, including:
Cash Flow: Predictable and sustainable cash flow.
Low rates: Factoring rates as low as 1.5% per month.
High advances: Instant factoring cash advances between 80–95% of the invoice’s value.
Quick setup time: New accounts only takes a few days to set up.
Quick funding: Factoring cash advances are deposited directly to your bank account within 24 hours.
No monthly minimum volume fees.
Service: Professional accounts receivable management by our highly experienced team.
Phenomenal customer service to support you and your customers.
No debt incurred: Wholesale factoring is not a loan therefore there is no risk of accumulating debt.
Transparent costs: We have no additional hidden fees or charges.
Business growth: Funds can be used to reinvest in your business and to make more deliveries.
Scalable funding: The amount of funds you can receive grows as your business grows.
Wholesale factoring service process
Factoring invoices can be a great way for wholesalers to raise immediate working capital and to improve cash flow. At Growth Capital we make it simple for you to get paid quickly. We finance your receivables, giving you more time and resources to grow your business. Our wholesale factoring plans are straightforward and easy to implement. The 5 basic steps in wholesale factoring, after you open an account with Growth Capital, are:
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Deliver goods/services to your customer as usual;
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Invoice your customer and submit a copy to Growth Capital along with prove of delivery (POD);
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We send you an instant cash advance to you;
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Your customer pays us the full amount of the invoice when it is due;
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We send you a rebate of the reserve amount, the remaining balance minus the factoring fee.
Cost of factoring
Factoring rates vary across industries. Get a quote today to find out how Growth Capital can help you, so you can focus on growing your business.
Why wait for cash? Get paid today
Ready to get started? Factoring with Growth capital is an effective cash flow solution for your wholesale business. Simply send your outstanding customer invoices to us and collect an advance immediately. Our factoring services can give you the peace of mind to focus on growing your business without any cash flow worries. Contact us today or call at 647-331-4769.