Frequently Asked Questions (FAQs)

A full-spectrum factoring company works with its clients as a preferred partner from the beginning of a project to the end, and beyond. We will provide a vast array of services that will help our clients every step of the way. This includes but is not limited to project and operating capital, payroll services, SOW management, and CPA business consulting that helps our clients grow, expand, and maximize their bottom-line profits.

SOW is a common term used in the construction industry to mean the scope of work on a project. Lenders will require a SOW to lend money for a construction project. A good SOW will give a detailed list of every part of a project and the estimated budget associated with completing that portion of the project.

When a company factors its unpaid invoices, it is selling a cash-flow asset at a discount for an immediate payment. A loan uses a company’s assets for security against the note. With a loan, the company must pay back the loan in full plus interest at a specific time in the future.

When a business sells its accounts receivable to a factoring company, the business gets paid immediately and in full (less a small discount) for their invoice receivable. Since the credibility for payment falls on the customer of the business, there is minimal paperwork and qualifications on the part of the business. This alleviates the need for the business to have a good credit score, provide tax returns, bank statements and many other documents that are generally required when a business loan is used. Thus, the business saves on unnecessary expenses and loss of time that usually come with a business loan. A business is more likely to qualify for factoring than for a business loan.