Factoring companies in Tennessee buy your accounts receivable and advance you a percentage of the money. You receive the balance when the customer pays the invoice, minus a fee. If your business has grown so much that your accounts receivable are much larger than your cash on hand, now’s the time to look for factoring companies. Tennessee receivables factoring companies will buy your receivables and you’ll pocket much needed cash that you can then reinvest in your business.

You can also use a Tennessee invoice factoring company if you want to expand your business. Rather than taking a loan and going into debt, sell your invoices to a TN factoring company to help your business grow. You can use the cash you receive to buy more inventory, hire more people or upgrade your equipment.

If you run a Tennessee-based business, consider the following when looking for Tennessee receivables financing:

1. Check out local Tennessee factoring companies.

2. Find an online factoring company to handle your Tennessee receivables factoring.

3. Select a nationwide factoring company that has factoring companies in Tennessee.

Action Steps
The best contacts and resources to help you get it done

Check local Tennessee invoice factoring companies to receive the personal touch

Use local factoring companies. Tennessee based companies will provide more personalized service for your Tennessee business factoring than national companies.

I recommend: Orange Commercial Credit has been in the finance business for more than 25 years and is committed to bringing factoring to small and mid-size companies. It is located in Nashville, TN. Commercial Finance Group caters to businesses that don’t qualify for bank financing and gives advances up to 90%. It is located in Memphis, TN.

Look for reliable online factoring companies that can handle your Tennessee A/R factoring

When looking at online factoring companies you need to look at their history and the factory company's ease of approval. Also, take into consideration the rates the company charges for handling your Tennessee accounts receivable (A/R) financing.

I recommend: Alliance One has account executives who have been in the finance business for more than 30 years. It specializes in factoring to small- and mid-size businesses. Crestmark Commercial Capital Lending, LLC has been in business since 1991 and provides factoring to every size business.

Find a national company that can handle your Tennessee receivables financing

Even though local Tennessee factoring companies are likely to provide more personalized service, there are some excellent national companies that can handle your Tennessee A/R financing.

I recommend: Commercial Capital LLC has representatives in every state and offers factoring to small and mid-size businesses. It has rates as low as 1.5% and advances as high as 90%. ONAN Commercial Lending is a division of ONAN Capital Holdings and provides financing to small- and medium-sized businesses nationwide.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Getting a loan in Tennessee is difficult for new businesses. Tennessee factoring companies offer you an alternative because factoring is not a loan, and your customers' ability to pay is the basis of your approval.
• •  Make sure you understand the terms of the factoring company in TN that you decide to engage. The amount of the advance on your accounts receivable can vary from 65% to 97%, and the fees vary from 1% to 3% of your receivables.