Do I Have to Factor All of My Invoices?


Gibraltar Business Capital’s 13-part video series about factoring continues with questions about invoices. President Scott Winicour, who has explained the workings and nuances of factoring in previous video installments, takes on this frequently asked question: Do I have to turn over all of my invoices to a factor?

“At Gibraltar, we operate using a line of credit by pooling invoices that you can draw funds from,” Winicour says. “You don’t have to factor all your invoices but there’s no reason not to. There’s no penalty or extra cost for including all of your invoices in the borrowing base, and it could increase your funding power.”

But, he adds, once you send a customer to a factor, it’s best to keep that process in place. Customers pay a lock box that is in the factor’s control and if you change that month to month, it could create confusion to your customers. “By staying the course between your customers and your factor, you can guarantee a smooth paying process for everyone involved,” he says.

Do you have other questions about factoring? Click here to watch Gibraltar’s video series created to educate small- and mid-market businesses on factoring or download a how-to guide.

If you are ready to solve a working capital shortage or capitalize on a growth opportunity click here to contact us today and request a factoring quote.

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