Factoring is the simple conversion of your Accounts Receivable into cash.

You maintain control of your customers and your customers still make their checks payable to you. Payments are directed to a lock-box setup just for your account.

Spectra Financial advances you up to 90% of the invoice amount as soon as your creditworthy customer receives your shipment or accepts your services.

No longer do you have to wait 30, 60 or 90 days to be paid. Get up to 90% of your cash now and when Spectra Financial is paid by your customer, you receive the remaining balance, less our small fee.

Example

As an example let's say you make a $10,000 shipment to your customer generating a $3,000 gross profit and it takes 3 days to ship and deliver with 30 day payment terms.

If your manufacturing or restocking cycle is 12 days that equates to a 45 day transaction period. At that rate you can only make shipments to this account 8 times a year, but if you factored the invoices, and received $8,000 the same day your customer received the shipment and another $1,850, ($2,000 less our fee of about $150) 30 days later, you could repeat that cycle 24 times a year.