Factoring

Accelerate cash flow on open accounts.

Advantages

Get cash without waiting on your clients.

Factor as often as you choose.

Bad credit is no problem.

No debt on your balance sheet.

What is Factoring?

How does your business grow? Some businesses grow by taking on bigger and bigger orders. But it’s hard to bid on the next big job if you’re still waiting on your current clients to pay their invoices. A delay in payments could mean you’re not positioned to bring in the labor and materials you need to grow your business. To get a jump on AR payments without adding debt to your balance sheet, try factoring.

Factoring lets you sell invoices, purchase orders, contracts, and other accounts receivable to a factoring company. The factoring company gives you cash for your AR upfront and takes care of collecting payment directly from your clients. You can apply this cash as working capital, to spend anywhere you see fit. When the customer satisfies their invoice, the factoring company recovers their costs, charges a small fee, and forwards any remaining funds back to you.

How to Effectively Apply Funds

Businesses that use invoicing customarily offer their clients anywhere from 30 to 90 days to pay, depending on the industry. While this courtesy can be great for customer relations, it’s not always easy to budget. The business still has expenses like rent, utilities, and payroll to meet, even if they don’t fall into the same 30 or 90-day cycle.

If this describes your business, consider using factoring to boost your working capital. Factoring is fast, flexible, and won’t damage your credit. Since the factoring company uses your clients’ creditworthiness, not yours, it can be an easy way to get cash, even if your business credit score is low.

Financing Options

Fast

Get advance payment on your invoices, contracts, and purchase orders before they’re due. Factoring is easy to apply for and can be approved in just a few hours. Don’t wait weeks or months to see your cash payments. Factoring puts working capital in your hands now.

Flexible

Factoring lets you decide when and what you want to sell on your schedule. You can bundle several invoices at once, or sell one big contract. If you’ve got reliable clients with a consistent history of paying on time, factoring lets you leverage your relationships to boost your cash flow.

Debt-Free

You can utilize factoring in your small business without taking on new debt. Factoring is the sale of an asset you already own, not a loan. As long as your client pays as agreed, you never have to return the funds. This leaves you free to move forward without worrying about interest or prepayment penalties.

Pre-Apply

A little information helps us start the positioning process for your loan.

Frequently asked questions

Q. When is factoring not a good fit?

Factoring helps you cover short-term expenses like materials and payroll. However, it’s not ideal for major purchases like real estate, land, or construction. For targeted financing for capital investments talk with our team about finding the right loan product for your objectives.

Q. How do factoring companies make money?

Factoring companies, or “factors”, charge a fee for their services. This is a percentage of the invoice’s total value. Some factors may charge fees for late-payments or to extend their terms. Make sure you have a complete list of charges before you choose a factor.

Q. What is a good factoring rate?

A typical factoring rate is between 1% and 5% per month. The factoring rate can be a percentage of the total asset value or a percentage of the amount the factor advances. This depends on the factor you choose, your industry, the creditworthiness of your clients, and the volume of AR you are factoring.

Q. What happens if my client doesn’t pay the factor?

When the factor gives you an advance on your AR, it expects to receive repayment from your client or customer. If your client or customer fails to pay, requests a return, or wants a refund, the factor can’t collect to recover their costs. In this case, your company will need to repay the funds to the factor.

The Windismodis Advantage

We are networked with entrepreneurial lending markets, matched to the pace of startups and growth-oriented businesses.

Let us help you reach your financial goals today with Healthcare Financing.

Industry growth takes critical and creative thinking from every front. Windismodis can become part of your innovation network, thinking creatively to plan and source financing throughout your growth cycle.

Get in touch.

    Healthcare Financing Solutions

    For both medical enterprises and private equity sponsors immersed in the healthcare sector, Windismodis Capital offers tailored products and expertise to cater to their distinct needs. Despite differing perspectives, our commitment remains unwaveringly focused on achieving success for our clients.

    Navigating the nuances of healthcare finance—from short-term liquidity concerns to long-term strategic planning—can be challenging. Many healthcare providers contend with cash flow volatility stemming from delayed patient payments and sluggish Medicare/insurance reimbursements, often exacerbated by regulatory changes. Windismodis Capital's Treasury and Payment services offer streamlined liquidity management solutions, while our customizable credit facilities provide vital support during cash flow gaps.

    For sponsors with a broader strategic outlook, optimizing processes, managing risk, and unlocking maximum value are paramount. Our innovative financing solutions facilitate organic growth initiatives and facilitate seamless merger and acquisition endeavors.

    What Sets Us Apart

    At Windismodis Capital, we pride ourselves on offering a diverse range of financing platforms tailored to the healthcare industry's unique requirements. With deep-rooted relationships within the healthcare landscape and private equity circles, we possess a nuanced understanding of our clients' specific challenges, allowing us to craft flexible lending solutions tailored to their needs. We collaborate closely with clients on strategic initiatives and target acquisitions, leveraging our annual conference to foster valuable connections with investors and industry leaders.

    Our Expertise Spans Multiple Sectors

    Windismodis Capital's team of seasoned healthcare lending professionals specializes in various sectors, including:

    • Services: Home health, hospice, dialysis
    • Facilities: Hospitals, long-term care, behavioral health, medical office buildings
    • Physician practices and outpatient services: ASC, hospital services, dental, dermatology, anesthesia
    • Medical products/devices
    • Pharmaceutical products and services
    • Healthcare information technology

    Comprehensive Financing Solutions

    Our suite of products and services includes:

    • Cash flow loans for buyouts, acquisitions, refinancings, and recapitalizations
    • Arrangement and syndication of multi-lender facilities
    • Asset-based loans
    • Real estate financing
    • Working capital lines of credit
    • Medical equipment financing

    Whether you're seeking to stabilize cash flow, pursue strategic growth initiatives, or navigate complex acquisitions, Windismodis Capital stands ready to provide tailored healthcare financing solutions that align with your objectives. With our deep industry expertise and collaborative approach, we empower clients to achieve their long-term financial goals in the ever-evolving healthcare landscape.

    For both medical enterprises and private equity sponsors immersed in the healthcare sector, Windismodis Capital offers tailored products and expertise to cater to their distinct needs. Despite differing perspectives, our commitment remains unwaveringly focused on achieving success for our clients.

    Navigating the nuances of healthcare finance—from short-term liquidity concerns to long-term strategic planning—can be challenging. Many healthcare providers contend with cash flow volatility stemming from delayed patient payments and sluggish Medicare/insurance reimbursements, often exacerbated by regulatory changes. Windismodis Capital's Treasury and Payment services offer streamlined liquidity management solutions, while our customizable credit facilities provide vital support during cash flow gaps.

    For sponsors with a broader strategic outlook, optimizing processes, managing risk, and unlocking maximum value are paramount. Our innovative financing solutions facilitate organic growth initiatives and facilitate seamless merger and acquisition endeavors.

    What Sets Us Apart

    At Windismodis Capital, we pride ourselves on offering a diverse range of financing platforms tailored to the healthcare industry's unique requirements. With deep-rooted relationships within the healthcare landscape and private equity circles, we possess a nuanced understanding of our clients' specific challenges, allowing us to craft flexible lending solutions tailored to their needs. We collaborate closely with clients on strategic initiatives and target acquisitions, leveraging our annual conference to foster valuable connections with investors and industry leaders.

    Our Expertise Spans Multiple Sectors

    Windismodis Capital's team of seasoned healthcare lending professionals specializes in various sectors, including:

    • Services: Home health, hospice, dialysis
    • Facilities: Hospitals, long-term care, behavioral health, medical office buildings
    • Physician practices and outpatient services: ASC, hospital services, dental, dermatology, anesthesia
    • Medical products/devices
    • Pharmaceutical products and services
    • Healthcare information technology

    Comprehensive Financing Solutions

    Our suite of products and services includes:

    • Cash flow loans for buyouts, acquisitions, refinancings, and recapitalizations
    • Arrangement and syndication of multi-lender facilities
    • Asset-based loans
    • Real estate financing
    • Working capital lines of credit
    • Medical equipment financing

    Whether you're seeking to stabilize cash flow, pursue strategic growth initiatives, or navigate complex acquisitions, Windismodis Capital stands ready to provide tailored healthcare financing solutions that align with your objectives. With our deep industry expertise and collaborative approach, we empower clients to achieve their long-term financial goals in the ever-evolving healthcare landscape.