How Does Factoring Work?

At Gordon James Financial Solutions, we love working with janitorial, security firms and  staffing agencies, as well as a myriad of other industries.   We  understand the challenges these business owners face on a daily basis.

Imagine landing that dream contract of placing over 100 employees at the work site of a new client at a job next week.  You have the employees.  You are very comfortable with their ability to work and represent your company well.

But what keeps you up at night?  You don’t have enough capital to pay those employees two payroll cycles before you get your first payment from your new client.  You need a working capital loan or an accounts receivable loan.  This is where invoice factoring can help you.

March 1-  contract starts, employees begin working

March 14-  employees payroll #1

March  28-  employees payroll #2

April 1-  You bill your client for March

April 14- Employees payroll #3

April 28- Employees payroll #4

May 5th– You FINALLY receive payment from your client

If you were working with Gordon James Financial Solutions, we would have you preapproved with that client to send up to a specified credit limit of invoices as soon as you landed that client!

Our underwriting is based upon the strength of YOUR CLIENT.

Gordon James has the network to advance you up to 90% of the April 1st invoice ON APRIL 1ST.   That’s right, you’ll receive those funds on the day you send your invoice to your client.

This structure allows you to grow and focus on your business instead of worrying all night about the lack of capital.