Accounts Receivable Financing/Factoring
- Invoice Factoring
- International Factoring
- Purchase Order Financing
- Construction Financing
- Business Financing
- Apply Now (PDF)
Apply Now (PDF)
Invoice Factoring
Cash flow factoring—also known as invoice factoring and accounts receivable factoring—is the sale of your invoices for immediate cash. As top-of-the-line factoring companies go, we purchase your receivables and:
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Advance you 70% - 80% of the face value of the invoice.
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Charge you a fee. A typical charge for an aged 30 day invoice will be 2% to 4%, 3% to 6% if the invoice is aged 60 days.
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Remit to you the balance when the invoice is paid.
AFG is a full service factor (not all factoring companies are full service). Our accounts receivable factoring services include
Credit: We are your credit department
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At AFG we provide our clients an established line of credit for their customer.
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Each month AFG provides a credit report summarizing customer list with credit status.
Bookkeeping: We are your bookkeeping department
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Twice a month AFG will provide you with an aging of receivables.
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Each week you will receive a report listing which receivables had been paid in the prior week.
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You can also access your aging and payments at any time on line.
Funding: We provide advanced funding
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AFG will purchase the receivables at 70-80% advance rate.
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We purchase the receivables on a recourse and non-recourse basis.
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Each week our customers receive an equity payment based on collections from the prior week.
Collection: We are your collection department
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Full staff of trained collection representatives
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Availability of collection staff to answer any and all questions.
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In house legal department to handle any collection problems.
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Our collection staff is bi-lingual (English/Spanish).
At AFG our full range of services provides each client with the access to fast and accurate factoring. When considering choosing a factor ask specifically what services are included and if services are extra. Many factors charge extra for credit work, mailing, running reports, etc. AFG services are all inclusive, there are no hidden fees.
We factor any type of industry (see types of accounts) whether it be service, manufacturing or distribution. With over 30 years of experience we have factored thousands of companies with:
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Revenue from $5,000 to $2,000,000 per month.
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Invoice size from $100 to $1,000,000
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Start ups to established companies
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Single accounts to customers with hundreds of accounts.
Want us to evaluate your company for factoring?
You can either send a quick application or a complete document listing. The quick application is to evaluate your company potential for factoring. From this basic information we can give a tentative quote. However, before any deal is consummated we will need all documents listed in the complete document listing.
Apply Now (PDF)
International Factoring Funding
AFG offers international factoring funding to clients anywhere in the world. We will consider international trade finance on any transaction that includes:
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U.S. Seller to Foreign Buyer
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Foreign Seller to U.S. Buyer
Factoring Funding - Example 1: Foreign Seller to US Buyer
An Italian manufacturer of high quality bedroom furniture sells container loads to credit worthy U.S. customers (buyers). When we receive invoices and bills of lading that the goods have been shipped to the U.S. buyers, we will wire funds to the Italian manufacturer. This is an example of import/export financing.
Factoring Funding - Example 2: US Seller to Foreign Buyer
A U.S. aircraft aviation parts supplier sells to a Chilean Airline. Goods are shipped by air and all invoices are covered by credit insurance. When the Chilean Airline receives the goods, funds are advanced to the U.S. seller. 60-90 days later the Chilean Airline will wire funds to AFG. This is an example of an export finance transaction.
In almost all international trade finance cases—whether its import/export financing or an export finance transaction—we will want the goods sold to foreign buyers to be covered by our export insurance policy. Coverage on the export policy is usually an additional 1.5% to the normal factoring charges.
Credit insurance is needed for international transactions due to lenient financial reporting requirements in foreign countries and the difficulty of obtaining quality foreign credit information.
Apply Now (PDF)
Construction Factoring 
Your General Contractor is waiting to get paid from the Owner. You are waiting to get paid from the General Contractor or a subcontractor. You need commercial construction financing now to:
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Make payroll
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Pay a supplier to get discounts
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To start a new job
AFG can help your firm through our construction factoring program. Over the years we have provided commercial factoring to contractors and subcontractors. We have supplied commercial construction financing through the factoring of receivables to window and door manufacturers, concrete providers, heating repair and installation, electricians and others.
Because of mechanic lien laws, suppliers have certain rights. Commercial factoring of construction receivables requires additional work on your part and your customers’ part. If you have a potential construction deal that you want construction project financing by factoring receivables please do the following: Do not call AFG about construction factoring. Instead, first print out the Construction Verification Form for your construction project financing . This is an Adobe Acrobat PDF file.
If you are a subcontractor, show it to your General Contractor (GC) and see if the GC will sign when AFG (they do not sign now) sends it to them.
The person who must sign this construction factoring verification form cannot be the project manager but a person in authority who can order payment of your invoices or who signs the checks. .
Usually this person is the Controller, Chief Financial Officer or President of the General Contracting firm. This form says that the GC will pay AFG in full per terms without any disputes or deductions regardless of your state specific mechanic lien laws, your contract with the GC or if you owe money to any suppliers.
If the GC will not sign this form we cannot factor your receivables. If the GC will sign this form we will consider factoring your receivables.
Once you get approval from the GC then please review our construction factoring guidelines.
If you feel you can do these additional steps then please present to us documents needed from the Factoring Application Page with a non-refundable $500 application fee.
AFG funds construction receivables only in the United States.
Apply Now (PDF)
Business Factoring Loans and Business Line of Credit
AFG will consider factoring loans based on inventory of credit secured by or a business line assets to qualified customers only in connection with their factoring of receivables. Some of our best factoring loan examples are below..
A liquidation company in business for 12 years needed a short term inventory loan to purchase book closeouts. With 50% of the value of the books pre-sold, AFG loaned him up to $25,000 to purchase books. All invoices had to be factored and the loan to be paid off in 30 days. This short-term, revolving, easy factoring loan increased sales substantially.
An apparel manufacturer saw growth ahead. An easy factoring loan provided money to grow but it was not enough. AFG made a one year $100,000 loan on his equipment and machinery. With this additional capital he could make his business grow and factor more receivables.
A nursing staffing firm placed nurses at 13 week stints around the country in hospitals. Included in the cost were the housing of nursing staff. Because of deposits due to landlords, the staffing company needed additional money. AFG was able to give a $200,000 revolving business line of credit secured by property, receivables, equity and personal guarantee of the owner. Our client was able to increase sales dramatically.
The best factoring loan is one usually made to clients who have a track record of producing quality goods and/or a good balance sheet. We only make factoring loans in conjunction with account receivable factoring or purchase order financing. (Want to know more about Factoring?)
Call us 866-583-2911 x306
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