Factor Funding Co. is a factoring service with options to help many companies with their cash flow. It charges typical rates for the industry and offers different plans according to your business needs.
See all our recommendations for factoring services on our best picks page.
Factor Funding Rates and Fees
Factor Funding advances between 70% and 95% of the invoices it buys upfront before it collects money from your customers. While 70% is on the low end of a factoring advance and may not satisfy your cash flow needs, a 95% advance is high enough to solve most cash flow problems.
Once your customers pay their invoices to Factor Funding, you will receive the rest of the invoice amount, minus the fee charged by this company. The fee depends on your company's situation, but it's generally 1% to 3% of the invoice. Factor Funding does not charge a startup fee for using its service.
Factor Funding does not have a standard factoring maximum, instead basing it on your collateral and your ability to repay the invoices. According to Factor Funding's website, there is no minimum transaction requirement, but it prefers transactions – or a combination of transactions – that value $10,000 or more.
One of the pluses of working with Factor Funding for your accounts receivable is that it offers non-recourse factoring. This means that if your customer does not pay Factor Funding, you are not required to buy back your invoice. This is a plus for your company, since you don't have to inhibit your cash flow to pay back unpaid invoices.
Like many factoring companies, Factor Funding will check the quality of your customer's credit to make sure they are reputable, since they will be paying the invoices. They are not concerned with your credit history; if you have poor credit, Factor Funding will still work with you. However, it does ask that you or your company's ownership provide personal guarantees before working with this factoring service.
Ease of Application
You cannot apply for accounts receivable services from Factor Funding's website, which is a major downside. You must download and fill out a PDF form, then fax, mail or email it into a Factor Funding office for consideration. You can request a quick quote online, though this feature was not functioning at the time of this writing, so we were unable to test it.
You can be approved for funding within 24 hours of Factor Funding receiving your application. Once you have set up an account with this company, you'll receive funding within 24 hours of your invoice being purchased.
There is no invoice minimum – though the company prefers transactions equal to $10,000 or more – or commitment minimum with Factor Funding. This means you can factor as much or as little as your company needs.
Factor Funding offers telephone and email customer support. When we tested its customer service, Factor Funding was not very responsive to our emails, which was disappointing to say the least.
However, when we called and spoke with customer service associates, we were pleased with the information they provided and their general manner of working with us. Customer service is available from 8:30 a.m. to 5 p.m. CST Monday through Friday.
Factor Funding's high monthly ceiling for sales and low rates make it a strong contender, but its major limitation is that you can't apply for factoring from its website. Instead, you must download a PDF and then fax, email or mail it to the company's office. Although you can receive an advance on your invoice in as little as 48 hours after submitting an application, the process is frustrating.
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