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What is Factoring?

It's no secret that cash flow is the lifeblood of every business. Successful businesses require consistent cash for ongoing operations and additional cash reserves to fund growth opportunities. Maintaining sufficient cash can be difficult for new businesses and businesses experiencing rapid growth. GCBC can provide immediate assistance by turning your accounts receivable into cash.

With accounts receivable factoring, GCBC considers your customer’s ability to pay, not yours. The biggest attraction to factoring is not being held captive by slow-paying customers.

Factoring with GCBC lets you turn your invoices immediately into cash that can be used today to meet payroll and other expenses.

 

How Does Factoring Work?

Factoring with GCBC is fast, simple and hassle-free. Clients fill out a schedule of invoices they wish to sell when capital is needed. Upon receipt of the schedule, Gulf Coast Business Credit will fund 75 - 90% of the total amount on the same business day. Once the invoice is collected in Gulf Coast’s lock box, the reserve account (less fees) will be returned to the customer. Our client’s enjoy the benefits of Same Day Funding, as opposed to waiting up to 90 days for payment.

 

Factoring vs. Traditional Bank Line of Credit

  • Accounts Receivable Financing focuses on the credit worthiness of your customers, not your company's credit
  • Unlike typical bank financing, Factoring Clients are not subject to tightening credit availability due to credit cycles, economic volatility, or market fluctuations
  • Traditional bank financing has restrictive covenants on net worth, leverage, profitability, dividends and other restriction, which inhibit sales growth
  • Typical bank financing focuses on the strength of the balance sheet, the profit and loss statement and cash flow of your company
  • Factoring de-leverages your balance sheet
  • Getting setup to Factor with Gulf Coast Business Credit is quick, with no long approval process