1st PMF Bancorp is a factoring service that has been in business for more than 30 years and can help fund your business quickly. It has no termination fee and has a quick turnaround time for approval and funding.
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1st PMF Bancorp Rates and Fees
Once you sell this factoring company your invoices, it funds up to 80% of the invoice amount within 24 hours. This advance is low compared to other factoring companies we evaluated – most services offer at least 90% or more – but it keeps the fee rate percentage 1st PMF Bancorp charges low, too.
Depending on your industry, 1st PMF Bancorp charges between 1 and 3% of each invoice, which is taken out of the money your customers pay to them before funds are transferred to you.
There is a steep startup fee – $500 – to use 1st PMF Bancorp. Today, not many factoring services charge a startup fee so that excessive of a startup fee is aggressive, to say the least. However, the company does provide unique services not found in other factoring companies, such as a supply chain financing program, equipment financing and other services.
1st PMF Bancorp can factor up to $5 million a month. It works with startups and international clients, so you can use its services regardless of where your customers are located. You can sell invoices to this company as long as they are 90 days delinquent or less.
1st PMF Bancorp offers non-recourse factoring, which means that it insures the invoices it buys from you. As a result, if one of your customers doesn't pay, you are not required to buy back the invoice. Unlike recourse financing, where you are required to repay any unpaid invoices, 1st PMF Bancorp ensures that your business's cash flow isn't interrupted.
1st PMF Bancorp doesn't publish its minimum requirements on its website, but customers who have been clients report that it only factors invoices with a collective value of $15,000 or more. We were unable to confirm this or other minimum requirements with the company.
Ease of Application
You can apply on 1st PMF Bancorp's website. The company contacts you within 24 hours to let you know if you're approved. If you work with 1st PMF Bancorp, you must factor at least $15,000 a month and contract with them for at least 24 months.
Customer Service and Support
Once you are approved with 1st PMF Bancorp, the company offers a dedicated advisor with whom you can speak to about any questions or concerns you have with the service, or about existing or new invoices to factor.
We tested 1st PMF Bancorp's customer service, posing as a potential customer. In addition to telephone and email support, this factoring company offers live-chat support. The experiences we had with the customer service associates both as a customer and as journalists were positive. The customer service experts we spoke with were informative, helpful and courteous.
While 1st PMF Bancorp has a long history of providing factoring services to a variety of industries, it has a steep startup fee that most of the other factoring companies we reviewed don't charge. Additionally, the company's website isn't very transparent. You'll have to contact the company directly to learn what the minimum requirements are to work with them, as well as their specific rates and fees.
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