Businesses sometimes stray away from factor financing because they look at it as a costly, “last resort” option. However, there is no fixed price for factoring a company’s receivables. It depends on a number of things, including growth expectations and creditworthy customers.
RMP Capital does not collect interest. Rather, we purchase invoices at a discount, and then we quote rates in the form of a percentage discount of the original invoice value — typically 2-6 percent. Don’t confuse your factoring discount rate with an interest rate on a loan! It’s like comparing apples and bananas.
Moreover, factoring companies like RMP Capital offer services that banks don’t. For example, our team can take over a large portion of your accounting work, assist with credit checks and even create financial reports.
Accounts receivable factoring can be more expensive than traditional financing. However, you gain immediate peace of mind in knowing you’ll always have the capital available to fund the growth of the business.
If your business doesn’t have the money it needs to expand, connect with RMP Capital. Dial 631.738.0047 or visit us online and ask about our array of creative funding services!