Factoring Loan/ Accounts Receivable Loans

Nations Loan Services offers business Factoring through its national affiliation with a direct lender.  Nations Loan charges no upfront fees. Nations Loan will underwrite the credit and process your loan request.  Factoring is available in all 50 states. Nations Loan will provide a quick response once the information has been submitted. Loans range from $500,000- $10,000,000.  In many instances, the factoring loan could be a part of the USDA or the SBA loan request.  The Factoring Loan could fund before the SBA or USDA loan if needed. The Factoring Loan does not have to be part of any other loan request.

There is also the possibility of paying down the Factoring Line or even paying off the line if and when the SBA or USDA loan is closed.  There would have to be sufficient real estate and FF&E value to pay down or payoff the Factoring loan.

What Is Factoring?

The main reason that companies choose to factor is for quick cash on their receivables, rather than waiting the 30, 60, and 90 days till paid by customers.

Factoring is a transaction in which a business sells its invoices or receivables, to a third-party financial company known as a “factor.” The factor then collects payment on those invoices from the business’s customers. Factoring is considered more expensive than a typical Bank Line of Credit. The interest rate and the fees are usually much higher, but the Factoring Line can usually be approved in 1-2 weeks.

General Underwriting and Guidelines:

Types of Companies:

  • Manufacturing
  • Oil Field Services
  • Food & Beverage
  • Government Contracting
  • Temporary Staffing
  • Transportation

Asset Based Line of Credit:

  • Accounts Receivable, Inventory & Equipment
  • Receivables Factoring
  • Non-Recourse Factoring

Advance Rate:

  • 80%-90% on Eligible Receivables
  • 80% up to on Inventory NOLV
  • 70% up to FMV on equipment

Rates & Fees:

  • Rates varies from 10%-16% interest rate*
  • Points can range from 3%-10%*

*Rates and Fees are subject to quality of receivables, balance sheet, income, credit, and other underwriting requirements.