What is Factoring?
Factoring is the ability to borrow as much as 90% of the face value of your verified invoices. This money is transferred directly into your account within 24 hours, so you are free to make your payroll, pay taxes and other operating expenses. Through a contract assignment, your invoice is paid directly to GCFS. We pay back your borrowed amount, plus the factoring fee and return the rest to you. Simple!
The Factoring Process
Benefits of Factoring
Factoring is not a business loan, it is the sale of an asset; your receivables. It does not create long-term debt on your balance sheet, and relies upon the credit worthiness of your customer (the US government), rather than your credit history. This offers better opportunity for contractors to quality for much needed cash. Other benefits include:
- Immediate cash availability within 24 hours
- No need to give up equity
- Cash can be used for payroll, taxes and other operating needs
- Flexibility to choose which invoices or customers to factor
- Short application and approval process