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Guide to Factoring

TRADITIONAL FACTORING

Factoring is a form of working capital finance whereby clients sell their Accounts Receivable for an agreed term and recieve immediate cash availability. Factoring provides the following advantages:

Funding

  • Immediate cash advances of 80-90% of the invoice amount, with the balance being paid to you when your customer pays us.

Accounts Receivable Processing

  • Franklin does all your accounts receivable processing from the time you issue an invoice to collection. We provide you with a report every time a customer pays an invoice, as well as an aged analysis report of all your customers’ accounts. Real time updates are available online 24/7.

Credit Administration

  • We investigate your customer’s creditworthiness and provide you with credit advice.

Collections

  • Our experienced account managers will at all times interact with your customers politely, tactfully and respectfully.

FACTORING BASICS

  • Factoring is the sale of invoices at a discount to a factor for immediate cash.
  • The invoices are due to be paid at future dates certain.
  • The factor purchases the invoice when the invoice is issued and then receives payment directly from your customers.

 

“We’re a small company and we don’t have the cash laying around to finance all of our purchase orders. Our relationship with Franklin allows me to focus on my business. I wear a lot of hats in my business and now I don’t have to wear the hat of financing my business.”

President, Southern California Fashion Designer and Distributor