Making Sense of Advance Rate

In the third video of a 13-part series, Gibraltar Business Capital President Scott Winicour explains how businesses can leverage the full benefit of their invoices through factoring – an invoice financing solution that enables business owners to access working capital, the lifeblood of every business.

“Almost all factoring companies automatically offer an 85% advance rate on invoices, but how they apply that 85% advance rate varies from factor to factor,” Winicour says. Traditional factors look at each individual invoice and might not credit approve all of them, leaving some invoices out of the mix which in effect lowers the advance rate.

“With our line of credit, you can receive funding for up to 85% of all eligible receivables at any given time,” says Winicour. Gibraltar Business Capital’s approach is to pool all the invoices, rather than credit approve or verify each individual invoice. “You’re much more likely to get the full benefit of the advance rate with Gibraltar as opposed to the traditional factoring company,” he adds.

Gibraltar Business Capital provides stability during unstable periods of transformation for small and mid-market businesses. Delivering quick access to working capital, Gibraltar partners with businesses when banks and other funding sources won’t.

Are you striving to solve short-term capital challenges or seize growth opportunities? Click here to watch Gibraltar’s video series and get answers to the top questions related to factoring, or contact us today to speak with a member of our team.

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