Business Sales Acquisitions Mergers Consulting Funding Solutions
MKL Acquistions
home about sell sell faq buy buyer faq loans tools confidentiality contact

Accounts Receivable Factoring
Factoring= Cash Now with No Waiting!
  • Does your business need more working capital to fuel your growth?
  • Do you have slow paying customers who are putting your growth and survival at risk?
  • Could your business increase sales by offering better terms to your new and larger customers?
  • Are you spending too much time collecting from slow paying customers and not enough time building your business?
  • Has the bank turned you down for traditional financing due to reasons like; not enough years in business, little or no profit, not enough assets, or simply not enough financial strength?

If these are issues you have in operating your business, they can all be solved with a financial service provided by a nationwide company represented by The MKL Team called a Factoring Company.

If your business sells products or services on credit terms to other businesses or governments, it is your option to Factor these receivables and get paid right away!  This eliminates billing cycles for receivables that put a strain on your cash flow.

This financial service can help your business no matter where you are located, whether your company is fast growing and needs more working capital, or if you’re just struggling to survive.

You get your revenue now, not later and this can make all the difference when you are building a business!

Here’s an example: 
Let’s say you have a customer, The Smith Company, that owes your business $100,000 for a shipment of your widgets you just delivered and your terms to them are Net 30 days.

The Smith Company is a large customer that has good credit but they never pay their suppliers (you) any sooner than 45 days. Instead of anxiously waiting 45 days to get your $100,000, you decide to use Factoring to improve your cash flow. The Factoring Company (represented by The MKL Team) verifies your invoice to The Smith Company and you receive 80% of the $100,000 amounting to $80,000 within 24 hours, electronically wired to your bank account. If you have a Discount Rate similar to the sample shown below and The Smith Company pays the $100,000 invoice in about 45 days, this equals a factoring fee of 4.2% of the original $100,000 ($4,200). Since you have already received an advance of $80,000 from the factor, you will receive the remaining $20,000 minus the factoring fee of $4,200 ($15,800). Therefore, in the end you collected $95,800 of the original $100,000 invoice. However, this time you did not have to wait the usual 45 days to get your money. This time you received $80,000 up front in one day, and collected the remaining $15,800 in 45 days.

You can Factor as much or as little as you want. There are no obligations, no minimums, and no maximums. Whether your monthly invoices are $5,000 or $5,000,000, your business can benefit from Invoice Factoring and use the service whenever you want.

Please click for more information on the factoring process.

Other terms for Factoring are:

  • Accounts Receivable Factoring
  • Accounts Receivable Financing
  • Invoice Financing
  • Invoice Discounting
  • Invoice Factoring

These terms all refer to a financial service that allows a business to sell its outstanding receivables to a financial institution called a Factor and receive immediate funding for a small factoring fee. We refer to all these terms simply as “to factor or “factoring”.

Factoring Fees Explained
The important point to understand about Factoring is this: The advanced funding you receive for your receivables and the discount fees you will pay are based solely on the financial strength and credit worthiness of your customers, not your business!

Discount Rates will also vary depending on the total dollar amount you intend to factor on a monthly basis (volume discounts apply). It is also important to understand that specific rates or fees for factoring your businesses receivables cannot be promised or quoted without knowing anything about your customers, your business, or the invoice amounts you wish to factor.

Sample Fee Structure and Funding

Advanced Funding
When you send in an invoice to be Factored you will usually receive between 70% and 90% funding of the invoice amount within 24 hours after the invoice has been verified (depending on the invoice amount and the business paying the invoice). This is your advanced funding. Advanced funding is wired to your business bank account.

Discount Rate = Factoring Fee
It has been shown that Factoring fees are best for you, the Client, when based on a Per Diem Rate. The average Per Diem factoring fee is between 0.095% and 0.085% (per day), that’s less than 1 tenth of 1 percent per day that the invoice ages with the factor.

Sample Per Diem Fee

Length of Time for Payment

Sample Discount Rate

Per Diem Rate (per day)


Customer pays in 15 days


Customer pays in 30 days


Customer pays in 45 days


Customer pays in 60 days


Customer pays in 75 days


Customer pays in 90 days


Some factoring companies charge fees based on a Per 30 Days Rate (such as 3% per 30 Days). The down side to a Per 30 Days schedule is that it offers little flexibility when customers pay invoices a few days early or a few days late from set 30 day increments.

For Example, if a customer pays the invoice 31 days later you will be charged for 60 days worth of fees. If your customer pays the invoice 15 days later you will be charged for 30 days worth of fees.

With Per Diem Fees you only pay for each individual day the factor owns the invoice, no more, no less.

Remainder of the Advance minus the Factoring Fee
When your customer pays the invoice you will receive the remainder of the advanced funding, minus the Factoring fee (Discount Rate).

Here are some of the main advantages of factoring receivables using the services of The MKL Team:

  • Obtain funding for your outstanding receivables within 24 hours.
  • Offer better terms to large customers and increase sales.
  • Extend credit to large customers without asking for COD.
  • No new debt is created. Factoring is not a loan.
  • Pay your suppliers faster, take advantage of early pay discounts.
  • Improve your business cash flow and credit rating.
  • Eliminate long billing cycles and the hassle of collecting money.
  • Instant credit guarantees for new customers.

You can Factor as much or as little as you want. There are no obligations, no minimums, and no maximums. Whether your monthly invoices are $5,000 or $5 million, your business can benefit from invoice factoring and use the service whenever you want.

No matter what you call it… Accounts Receivable Factoring, Accounts Receivable Financing, Invoice Financing, Invoice Discounting, or Invoice Factoring… it provides you, the business owner, with a flexible financial solution that can help your business be more competitive while improving your cash flow, credit rating, and supplier discounts. 

Unlike traditional bank financing, it relies on the financial strength and credit worthiness of your customers, not you… and you can use this service as much or as little as you want. You get your revenue now, not later and this can make all the difference when you are building a business!

Click Here and Start Factoring Now!

back to top

Contact The MKL Team >

Business Loan Calculator

Financial Services
Acquisition Search
Business Sales Blog
Partner Links
Business Consulting Solutions
Receivables Financing (Factoring)
Factoring Enquiry Form

Get an Equifax 3-in-1 Credit Report Now!

Site Map | © MKL Business