How much does invoice factoring cost?

The cost of factoring depends on a number of variables. Primarily it is based on two things: The amount of money your business is factoring and the creditworthiness of your customers.

For businesses that are factoring large amounts of capital to customers that have very good creditworthiness, factoring rates can be under 1% per month.

Generally though, rates will typically be between 1.5% and 3%.

What is account receivable factoring?

Factor your invoices and get working capital fast.

Don’t wait to get paid. Factor your account receivables.

Many companies have to wait 30, 60 sometimes even 90 days to receive payment from their customers. By using factoring, also known as accounts receivable factoring or invoice factoring, your company can receive an advance on your invoice usually within 24 to 48 hours of the customer approving it. The advance amount is dependent on a number of variables, primarily on your invoiced customer’s ability to pay. Generally, 80 – 95% of the total invoice amount is advanced. In some circumstances the advance can be as high as 97%. The remaining amount, called reserve, is paid after the customer has made payment, minus a small fee. The rate of the fee varies based upon risk, but companies can expect it to be about 2 – 3% of the invoice amount. The cost of factoring increases if the financing is recourse factoring, meaning the factoring company not only advances money on the invoice, but also assumes responsibility of collecting payment. Both recourse factoring and non recourse factoring enable companies to unlock large amounts of capital previously tied up in their accounts receivable.

Let NPK Funding find the best factoring for your company’s needs. We pride ourselves on matching businesses with the most competitive financing and the best factoring service.

Need Cash Immediately?

If you are in need of factoring immediately, contact us anytime and we will match you with one of our partners that can provide financing of your company’s receivables within 24 to 48 hours.

Contact NPK Funding today and get approved.

Receivables Financing for Manufacturers

Is your company growing faster than your working capital?

Manufacturing Company Receivable Financing can help.

NPK Funding helps all types of manufacturing companies get working capital by financing their accounts receivable. This financing is fast and is a flexible source of funds for manufacturers.

By utilizing your accounts receivable as collateral, NPK Funding can advance funds against the face value of your invoices. This flexible credit line can grow proportionately with your sales cycle, so you are never paying for a credit line you don’t need. The approval process is quick and simple and we offer the lowest factoring rates in the business.

Solutions to Manufacturing Cash Flow Shortages

Cash flow shortages are inevitable for manufacturing companies. Whether its due to slow receivable turnover, seasonal sales, rapid growth, new business, or because a company’s sales history doesn’t justify traditional bank financing, a business can’t grow without sufficient working capital.

NPK Funding’s account receivable financing can help solve this problem by extending an advance using your receivables as collateral. Our financing approval is not based on company financials, tax returns or even equity to debt ratios. Instead it is primarily based on the credit strength of your customers and the invoice terms.

Purchase Order Financing

In addition to account receivable financing, NPK Funding can extend most manufacturers Purchase Order Financing, helping them finance new orders without borrowing from the bank or using operating capital.

Contact NPK Funding today and get approved.

Working Capital Solutions

Get financing for your business.

Our working capital solutions will get your company the money it needs to grow and succeed. Use financing alternatives such as invoice factoring,  inventory financing, or purchase order financing to get cash without incurring debt or diluting equity or ownership.

Traditional business loans require the company to take on large amounts of debt and it can take weeks before the company receives the cash. In addition, the bank will rely heavily upon your company’s credit history financial position for approval for the line of credit. By borrowing against your inventory or accounts receivable, your business can get the cash it needs fast, no matter what kind of financial position of your company is in.

Invoice Factoring

When borrowing against your receivables, NPK Funding will verify the strength of your invoiced customers and their ability to pay, not on the financial strength of your business. As long as your customers have a history of paying their invoices, our factoring company will purchase those receivables.

Purchase Order Financing

Purchase order financing, or PO Funding, is a short-term commercial finance option that provides working capital to businesses so they can pay suppliers upfront for the goods they need to complete a customer’s order.

Inventory Financing

A inventory intensive business can usually get inventory financing easily as long as the products can easily be sold on the open market. But even if they are not, NPK Funding has partnered with specialty inventory financing companies that will loan money against almost every type of inventory.

Equipment Financing

Our equipment financing programs will provide your company with structured leasing terms. We have helped vendors and end users with equipment leasing or equipment financing on all types of commercial equipment including: airplanes, trucks, freight, networks, computers, medical, diagnostic, and more.

Get the working capital your business needs today! 

Contact NPK Funding and get financing approval today.

Alternative Collateral Options

Use inventory or accounts receivable as collateral for financing. Do not dilute your company equity or take on large amounts of debt. NPK Funding’s flexible financing options will get your business the cash it needs to succeed and grow without incurring debt or having to sell equity in your business.

NPK Funding will verify the strength of your invoiced customers and their ability to pay when your company borrows against its receivables, not on the credit history or financial strength of your business. If you will be using your inventory for financing, NPK Funding will advance you cash based upon the value of your business’s inventory.

Borrow against inventory or use receivables as collateral to avoid incurring the debt that traditional loans will place on your company.

Contact NPK Funding and get approved today.

Flexible Financing Programs

Why pay for expensive, long-term financing when you do not need it? Use our short-term financing programs and only pay for financing when you want it. Financing options such as invoice factoring allow businesses to borrow against accounts receivable as needed. If your company doesn’t need the working capital, then it is not charged a fee.

Invoice financing is used by thousands of businesses such as; manufacturers, service providers, medical companies, wholesalers, export companies, transportation companies and many others to support their growth when cash is tight.

By using invoice factoring, a.k.a. accounts receivable financing, your company will receive an advance on your invoices within 24 to 48 hours of approval. The advance amount is dependent on a number of variables (primarily on your invoiced customer’s ability to pay), but generally your company will receive and advance equal to 80 – 95% of the total invoice amount is advanced. In some circumstances the advance can be as high as 97%.

Get the working capital your business needs today! 

Contact NPK Funding and get financing approval today.

Affordable Factoring Options

Save money by borrowing only when you need it. Get cash without selling shares or diluting your companies equity by using your accounts receivable or inventory as collateral instead.

NPK Funding’s invoice factoring and inventory financing programs will help you get the working capital your business needs. Usually, your business can be funded within 48 hours of approval. The process is simple, start to today by contacting NPK Funding.

Transportation Factoring

Working capital is a necessity in the transportation business. With the rising costs of fuel and labor, a company without enough cash flow cannot grow and in the long run, probably will not succeed. Our transportation financing and factoring solutions will get your business the cash it needs, when it needs it.

NPK Funding specializes in providing customized leasing and financing, primarily to end-users of aircraft, locomotives, semi-trailers and railcars. Our transportation equipment financing services include operating leases, single investor leases, equity portions of leveraged leases and sale and leaseback arrangements, as well as loans secured by equipment.

Let NPK Funding finance your transportation business today.

Fast Equipment Financing

NPK Funding is an international provider of commercial equipment leasing and finance. By offering low rates, longer terms and a low down payments, NPK Funding will find the right financing for your needs. In addition we offer many specialized finance programs for all types of commercial equipment and trucks.

We understand the finance and lease needs of our clients, and in turn give them the most competitive rates on leases and loans. NPK Funding finances and leases all types of new or used commercial equipment. Whether your business is a well established company or startup, we will find the right financing terms for your company.

If you’re planning to lease equipment, we can help you. Our equipment financing programs will provide your company with structured leasing terms. We have helped vendors and end users with equipment leasing or equipment financing on all types of commercial equipment including: airplanes, trucks, freight, networks, computers, medical, diagnostic, software, manufacturing, material handling, heavy machinery, construction equipment and many more.

Finding the right financing is just as important as finding the right equipment.

Let NPK Funding finance your equipment today.

Medical Financing Solutions

Medical equipment leasing allows you to finance 100% of the equipment costs and incorporate installation into the down payment. Our medical financing and sales specialists can help you with purchasing or leasing the equipment you need to successfully practice medicine.

Medical equipment leasing can help provide your business with the vital upgrades it needs to remain at the forefront of the marketplace without tying up your cash reserves. By using medical equipment leasing, you can lease medical furniture, operating room equipment,  patient monitoring equipment, MRI, sterilizers, anesthesia machines and other medical equipment and still have cash flow available for payroll and other day to day business expense. In addition, medical equipment leasing offers a number of critical advantages such as: tax deductions, balance sheet management, immediate write-offs, better asset management, improved cash flow, conservation of cash reserves, end of term options, and easy upgrades.

Get the medical equipment your business needs to grow!

Contact NPK Funding for medical equipment financing.