FAQs
What is the Cost of Greenback Financing?
The cost of our financing is contingent on many factors including your: industry, size, quality of your clients, etc. Our rates vary from 0.75% - 1.75% per 30 days. All of our financing costs are tax deductible making them more cost-effective for your business.
Do I have to factor all my invoices?
No. You can factor invoices at your discretion - you can choose which customers to factor and which invoices for each customer to factor.
How much can I factor?
Unlike traditional bank financing, your factoring line is tied to your sales. As long as you have valid invoices, we can continue to provide financing. This is why factoring is an effective financing tool for companies experiencing a high growth period.
Where do my customers send their payments?
All checks must be sent to Greenback Capital. We will notify your customers in writing. If your customer sends you a payment by mistake, you are required to forward the payments to Greenback Capital immediately. Any unfactored payments that we receive will be forwarded to you immediately (this is referred to as a flow-through payment).
How is Greenback Capital different from a bank?
Greenback Capital is not a depository institution and therefore we are not subject to stringent regulatory requirements. For example, federal regulation requires banks to comply with very stringent reporting and liquidity measurements. When a bank lends money, it also must require its clients to comply with many provisions such as minimum net worth, monthly financial reporting, annual audits, and other proof of financial stability.
Can a start-up company or business with poor credit qualify for factoring?
Yes! Start-ups, companies with poor credit, and companies lacking in tangible assets have a difficult time qualifying for a bank line. This makes going with Greenback Capital ideal because we focus on your customer's credit and not yours.
How will Greenback Capital treat my customers if they need to speak with them?
Greenback Capital understands that your relationship with your clients is your biggest asset. Although we are required to contact your client to notify them of our role as a lender, we do not interfere with your existing relationship.
Will my customers think my business is in poor financial standing if I factor?
Invoice factoring is commonplace and a well-known form of financing across the business community. Given the stringent requirements associated with traditional bank financing, many larger companies understand that their vendors/subs will need to use factoring to finance their growth. Ultimately, your customers will realize that factoring improves your ability to fulfill your obligations in a more efficient manner.
How long do I have to factor?
There is no long-term contract. Typically, we start off with a 6-month contract, however, we can offer month-to-month programs based on your business needs.