Factoring
Factoring is a transaction where a company sells (Factors) its Accounts Receivables, or invoices to a factoring company (such as Sallyport Commercial Finance), in order to improve cash flow. With Factoring, the client company will have immediate cash available for payable, payroll, maintenance or improving equipment, or other working capital requirements.
Factoring transfers ownership of the receivables to the factoring company. The account debtor is then notified of the sale and then remits payment directly to the factoring company.
Factoring through Sallyport assists the you with accounts receivable administration such as sending statements and making collection calls so you can reduce internal overhead, or redirect resources to help your company grow.
Sallyport works with our clients, and provides services such as credit checking, risk management, collection services, assistance with supply decisions and administrative support.
There are three integral parts to any factoring transaction
The Fee
The amount that Sallyport Commercial Finance will charge you for the service and the borrowing.
The Advance
The percentage of the total invoice amount, that Sallyport Commercial Finance pays you upon submission of that invoice.
The Reserve
The remainder of the total invoice amount, held until payment by the account debtor is made.