Open up working capital and accelerate cash flow

Accounts Receivable Factoring in Houston, TX

Sell your unpaid invoices in exchange for quick cash

Accounts receivable

Factoring Overview

The process of factoring in Houston, TX revolves around selling your unpaid invoices to what is known as a factoring company. The factoring company then takes on the responsibility of collecting from your clients. In exchange for your unpaid invoices, you receive a lump sum payment of upwards of 90 percent of the unpaid balance. Your unpaid invoices act as assets for your business. So when you sell them, you are not taking out a loan and do not have to repay anything back.

Clients and customers sometimes take a very long time to pay their bills, especially in circumstances where you have extended repayment terms to 90 days or more. This happens for a number of reasons depending on the specific customer and your industry. When your client pays the factor, they give you the remaining balance, minus the factoring fee.

Construction Loans

Purchase Orders and Contracts

In addition to outstanding invoices, you can also sell purchase orders to obtain the funds necessary to complete the order. Purchase orders in Houston, TX act as a contract of sale indicating a customer’s intention to make a purchase. So if you need $20,000 to cover the production or acquisition and distribution costs of a $100,000 order, you can sell the whole order so you get paid up front and can immediately begin production.

Like a purchase order, you can sell almost any kind of contract where you expect payment. So instead of waiting until the end of a project, you can get the money to complete it more efficiently. Construction, manufacturing and even service industry contracts can be factored


Is Financing Right for Your Business?

Financing empowers your business by allowing you to retain cash for operating expenses while moving ahead on major projects. Finding the right funding is often about matching your business plan with the right lenders.


Who does the Client Pay?
Once you sell your invoices, the factoring company takes up the collection process. Your clients will then receive an invoice from the factoring company. Some companies use collection methods that make it appear as if your business is collecting. However, since the factor takes up the collection process, it could potentially impact your relationship with that client.
Will a Factor Buy any Invoice?
Many factors will perform a credit check on your customers before purchasing an invoice. If they find the collection too risky, they might pass or offer a lower percentage of the amount owed.

Advantages of


Absolutely no credit or background checks required

Sell the asset for upwards of 97 percent of its value

Much cheaper than a loan