Factoring companies in Texas 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. Texas 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 factoring in Texas if you want to expand your business. Rather than taking a loan and going into debt, sell your invoices to a TX 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 Texas-based business, consider the following when looking for factoring in Texas:

1. Check out local Texas factoring companies.

2. Find an online factoring company to handle your Texas invoice factoring.

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

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

Locate a Texas factoring company to receive the personal touch

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

I recommend: New Century Financial, founded in 1985, caters to small and medium businesses. It guarantees 24-hour funding and is located in Houston, TX. Allied Capital Direct, founded in 1992, caters to businesses that don’t qualify for bank financing. It is located in Dallas, TX.

Look for reliable online factoring companies that can handle your Texas AR factoring

When looking at online factoring companies you need to look at its history and the ease of approval by the factoring company. Also, take into consideration the rates the company charges for handling your Texas accounts receivable (AR) factoring.

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 Texas invoice financing

Even though local Texas factoring companies may provide more personalized service, there are some excellent national companies that can handle your Texas receivables 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, Inc 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 Texas is difficult for new businesses. Texas invoice factoring companies offer you an alternative since 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 Texas that you decide to engage. The amount of the advance on your accounts receivable can vary from 70% to 95%, and the fees vary from 1.5% to 3% of your receivables.