Factoring

How Factoring Works

You prepare your invoices as you normally do. GCC purchases those invoices by paying you up to 90% of the invoice amount. GCC mails the invoices to your customer with instructions that they pay directly to GCC.

Once Greenfield Commercial Credit is paid on the invoices, we release to your company the reserved amount of the total invoices, i.e. the 10% or more due, minus our financing fee for advancing the cash.

The funding time for your initial factoring transaction is usually five to seven days. Once your account has been set up, cash can be advanced on your invoices and can be wire-transferred to your bank account within 24 hours of invoice date.

Factoring Terminology

Advance Rate is the amount of money provided immediately to the company factoring its accounts receivable, expressed as a percentage (usually from 75% to 90%) of the total invoice.
Discount Rate is the fee charged to the company factoring its accounts receivable.
Factor refers to the company that provides businesses with operating capital by purchasing their accounts receivable.
Reserve for Holdback is the amount of money that is not immediately provided to the company factoring its account receivable, expressed as a percentage of the total invoice amount. That is, Advance Rate + Reserve = 100% of Total Invoice Amount. This money, minus the Discount Rate, is paid to the customer once payment is received by the Factor.

Benefits of Factoring

The company receives cash immediately rather than waiting for payment from it’s customer.
The company can take advantage of cash discounts for early payment and volume purchases.
The company can offer better credit terms to its customers.

To find out what information Greenfield Commercial Credit needs to get you started click here.

“We sincerely appreciate Greenfield’s taking us as a client during a very difficult time in the U.S. Economy when banks were exceedingly reluctant to make new loans. Greenfield’s faith in us was instrumental in launching our company into a successful recovery from a difficult 2009.
We have appreciated the honorable manner in which Greenfield has conducted our relationship. Your personnel assigned to our account have always acted with knowledge, accuracy, and integrity. We are departing only due to an opportunity to significantly reduce our borrowing cost.”
-Dennis H. Withers of Trinity Forge, Inc.
“Our experience with Greenfield Commercial Credit was professional and cooperative. All the personnel were very willing to work with us through an extraordinarily difficult time and were extremely accommodating and flexible when we needed them to be, especially early on through the transition stage.”
-Paul Tomick of First Choice Packaging
“When I got home today I was pleasantly surprised to find a turkey in my refrigerator from Greenfield. Without a doubt, my favorite meal. Thank you so much. I also want to thank you for your professional relationship with my client. Although your costs are somewhat higher than other lenders, you more than make up for it by understanding your clients. It has been a wonderful relationship.”
-Dick Sigmund of Sigmund & Associates
“Gentlemen, in the many years of dealing with lenders in providing capital for our numerous LBO’s I can only say that Greenfield Commercial Credit has always stood above all others. Each deal is different, and the management at GCC would address the unique situations with creative and flexible alternatives. If the funding fit the ultimate goals, the response from GCC, was quick and never any surprises. We will continue to use GCC on all our future deals.”
-Gary Anderson of ADF Capital Partners
“The Greenfield Commercial Credit people have been the most collaborative and helpful bankers we have worked with in the last 20 years. I have been responsible for leveraged manufacturing companies which have used a wide number of organizations; Manufacturers (now Comerica), Comerica, Wells Fargo, G E Capital, Bank One (now J P Morgan Chase). Greenfield is by far the most imaginative and responsive of any of the financial institutions with whom we have worked. I have recommended them to others and would do so again.”
-Con Nolan of Great Lakes Die Cast