Is factoring a new type of financing option?

No. Factoring has been around in some form for more than 2,000 years. It was common in ancient Rome. In more recent times, it used to be viewed as a finance option only in the garment and textile industries. Today, factoring is a widely used financial solution for both Fortune 500 companies and small to midsize companies.

How can accounts receivable funding (factoring) help my business?

Factoring provides an immediate leveling of your cash flow. This cash availability allows you to meet payroll, tax, and other obligations on a timely basis, thus improving your credit. It enables purchases of inventory and supplies as needed, rather than having to wait for your customers’ remittances to arrive.  In short, factoring provides peace of mind. 

How is factoring with KD Factors different from dealing with a bank?

When making credit decisions, banks focus on your financial history, your credit score, and the strength of your balance sheet. KD Factors looks at your customers’ credit strengths. KD Factors can get you funded in three to five days; banks often take weeks or months to make decisions—if they are willing to work with you at all.

Do I have to factor all of my invoices and, if so, how often?

No. KD Factors does not require you to factor every invoice. Instead, you factor only when you have cash needs. We have clients who factor daily, weekly, or monthly, and sometimes longer. Again, we allow you to factor when your cash needs require funds.

Will my company qualify for factoring if I have other loans with a bank or other financial institution?

Yes. Your company can qualify for factoring if the bank or institution has a lien on your accounts receivables. However, we must know ASAP so that we can contact the bank or institution to see whether they will subordinate that lien in favor of KD Factors. We ask for this information in our application.

My company has a tax problem with the IRS. Can I still apply for factoring?

Yes. We ask for this information in the application. We handle each application on a case-by-case basis. We will need to get with the IRS to see if a payment plan, payoff, or subordination can be worked out. This must be done prior to our funding.

Is factoring an option if I have bad credit or a bankruptcy?

Yes. Again, we handle these situations on a case-by-case basis. Unlike a bank, we first look at the credit strengths of your customers and then at your situation.