[Nikki96]

I have a merchant interested in invoice factoring. The business sells a styling tool along with training to salons. Banks average 30-40k/ month

He has defaulted on two advances in the past

Problem is his AR report totals 16k and I know usually to qualify it should be around 50k

Anyone do invoice factoring for small accounts?

Thanks

[@jeannette]

Has the client paid off the old defaults? For Factoring you will need a first position UCC, if they have not paid off the existing debt the UCC will still be in place. They would need enough in AR to pay off the defaulted balances. Our minimum line size is 50,000 so they would need to be billing about 25,000 to make the line size make sense.
The other issue you may run into is who they are selling to, are they reputable salons with good payment history?
I do have a contact that does small accounts, however they are fairly expensive for Factoring. Advantage Funding Corp, Jason Farkas is a contact there.

[evgfunding]

I have a merchant interested in invoice factoring. The business sells a styling tool along with training to salons. Banks average 30-40k/ month

He has defaulted on two advances in the past

Problem is his AR report totals 16k and I know usually to qualify it should be around 50k

Anyone do invoice factoring for small accounts?

Thanks

Sent you a PM, feel free to reach out to discuss. Thanks!

[KMSampson]

Capital Solutions Bancorp will factor in a 2nd position behind a bank or SBA loan. Please reach out if we can help.