Discount Factoring / Recourse Factoring
Discount factoring / recourse factoring provides your business with flexible and immediate cash that will give your business the opportunity to grow, restructure, take advantage of supplier discounts through volume purchases or early payments, or even to fund payroll. Many companies need additional cash flow to support seasonal demands, growth, and more. Discount factoring is a widely accepted method of business financing in use by many large well-known companies. It is less expensive than traditional factoring, but, like traditional factoring, it is less restrictive than equity financing, allows you to access cash without having to give up company share, and gives you daily and weekly access to your eligible availability when you request it. Discount factoring can also increase and decrease based on your current business size and needs, and allows you to gain administrative support to manage your receivables without additional staff.
Discount / Recourse Factoring Highlights
| Primary Transaction Size |
Start-ups to $5 Million |
| Business Credit Type |
A/R Invoice Financing |
| Advance Formula |
Up to 90% of eligible Accounts Receivable |
| Advance Frequency |
Weekly (or as often as daily) |
| Services |
Customer investigation and approval
Accounts receivable bookkeeping
Customer collection
Cash management
Web-based reporting |
| Discount Factoring Benefits |
Flexible, can grow as your business grows, and can reduce when you choose
Easy to transition back to conventional banking
Pay off loans, make payroll without worry
Meet seasonal demands
Reinvest in business; fund marketing to grow your business
Receivables management allows you to focus on your core business
Take advantage of purchase discounts with volume or early payment |
| Crestmark’s Discount Factoring Benefits |
Competitive pricing
Fast response time:
Proposal turnaround within one day
Closing in as early as one week
Cash for invoices within 24 hours |
How Discount Factoring Works
After reaching a financing agreement with your company, you invoice your customer for goods or services completed, and send Crestmark a copy of the invoice (in some agreements, we’ll work up the invoice and send it for you). Crestmark then advances up to 90% of the eligible invoice to you within 24 hours. Our professional and efficient invoice management team follows up to ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release the remaining 10% to you, less a small administrative fee. And, with our timely detailed web-based reporting, you can check to see who has paid and who has not 24 hours a day.
This discount factoring process will free up valuable time and allow you to generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of damaged goods, lost shipments, misplaced or disputed invoices, or keeping payments current.
And, because discount factoring allows you to access more capital as your business grows, or less if you need less, you can ask us to either ramp up, or scale back on the number of invoices we finance.
Is Discount Factoring / Recourse Factoring The Right Solution For Your Business?
Your business is unique with working capital needs all its own. Our professional, experienced Business Development Officers will work with you to understand what best fits your business and cash flow needs, and a team of financing specialists will create a working capital solution specialized for you.
Call us today for more information about discount factoring or use our easy apply online form.
Or if you’ve got any other questions, fill out our contact form.
We’ll have a response to you in no time at all.