[TheChoice]

Is it possible to factor income received from a conglomerate company that leases spaces from our client. They have a long term multi year contract with a huge corporation to lease a store from them and receive monies on a month basis for lease. They are looking to factor the income received from said conglomerate. is this possible and would anybody know which direction to point me in?

cheers.

[VFG]

Lease agreements are usually paid in advance monthly. Factoring requires for a product or service to be contractually complete, which means if the service was billed after being rendered and the invoice states payment terms of net 30-60 days and there is supporting documentation of the transaction (PO's from the customer, signoffs, etc) then it can be factored. Unfortunately, given this is a lease, it would be impossible to factor lease payments as factors typically don't finance lease payments and the fact that the lease payments come from a related entity makes it even harder to finance through any means.

Hope this helps. Good luck!