[Sachip24]

From my understanding, most factoring deals need decent credit. They also have higher rates than the deal we did. This client had credit in the mid 500's. Also, it's not technically a factoring deal. It's a revolving LOC based on collateral (the contract). No, prepay penalties and no set payment. He can keep "drawing" money as long as he keeps providing new contracts. I've never done any other factoring deal, so I'm not sure what standards, but with this deal, there are no payments until the contract is completed. Regarding getting paid 10-15% monthly on the fees, with this deal, there are no monthly fees.

If you can do it yourself, go for it. I had a few people reach out, so it's obvs attractive to some people.

I do do it myself. I am a factor. Invoice factoring or an ABL both collect fees monthly and the factor pays out to the referral agent 10-15% of fees collected monthly as a residual to them. Invoice factoring and/or ABL don't necessarily go by the actual clients credit they care more about the business credit of who the client is doing business with since they are the ones paying the invoice not the merchant. with an ABL the merchant keeps drawing by submitting a banking certificate with new contracts to increase availability of the line. Invoice factoring is transactional it goes per invoice where as an ABL is revolver against the whole AR report as you mentioned.