Best Connect Capital (800 515-4126

800 515 4126


Best Connect Capital, Inc. | 800.515.4126


Otherwise known as invoice factoring or accounts receivable financing, factoring is ideal for companies with accounts receivables. Part of the challenges these companies face is the payment lapse in between jobs or sales. 1 may bill a company for a job or sale and your customer may not pay for 30, 45, 60 even 90 days. Factoring turns your invoices into cash within 24hours before the job even starts.

Some very common industries that take advantage of factoring are transportation/ trucking services, construction, staffing and wholesale.


Best Connect Capital will guide you to the right factoring bank that’s appropriate for your industry and background and then set up a line for you to begin turning your invoices into same day capital. The 1 st step is confirming your job or sale is solid with your customer, then rather than billing your customer you turn the invoice into the factoring company, and they will usually give you 80% of the invoice(s) upfront. When your customer pays the debt 30+ days later you receive the residual 20% minus a small fee. The better your customers the better the terms on a factoring line!


General or sub-contractors may have good customers like state and government agencies building roads, structures, monuments etc. but these larger agencies do not pay right away. While working on and completing a construction project it’s normal to face costly challenges where working capital is an absolute necessity to complete the job. Many people have seen structures start and cease building due to a construction company not having the working capital to complete the job. Factoring bridges the capital gap between the payment lapse on a contracting job.

Trucking, and wholesalers have similar issues. They sell a product to a company that does not pay on the spot. These invoices are sent out and satisfied 30+ days from billing in many cases with these industries. To solve that cash flow issue, you would once again take these invoice(s) and turn them into your factoring company. They would confirm the sale between you and your customer, and finally disburse a large majority of your customers bill into your business checking account.

Any company that works B2B or B2C with a payment lapse in between billing may qualify for a factoring bank/service.


In many cases factoring must be in 1st position as far as setting up the line for you to pull from. If you have other unsecured financing or certain types of loans for your business, it may affect your qualifications for a factoring deal. Factoring companies are largely based on credit worthiness so one must not have any open liens, judgments, or recent bankruptcies. However high-risk programs are available in the event of any of this.

To get started Best Connect Capital will collect some upfront financial information and then introduce this information to the appropriate investor like our other programs. To find out more send us a message, we may be able to solve your cash flow issues right away!


Factoring as a fact of business life was underway in England prior to 1400, and it came to America with the Pilgrims, around 1620. It appears to be closely related to early merchant banking activities. The latter however evolved by extension to non-trade related financing such as sovereign debt. Like all financial instruments, factoring evolved over centuries. This was driven by changes in the organization of companies; technology, particularly air travel and non-face-to-face communications technologies starting with the telegraph, followed by the telephone and then computers. These also drove and were driven by modifications of the common law framework in England and the United States.

Governments were latecomers to the facilitation of trade financed by factors. English common law originally held that unless the debtor was notified, the assignment between the seller of invoices and the factor was not valid. The Canadian Federal Government legislation governing the assignment of moneys owed by it still reflects this stance as does provincial government legislation modelled after it. As late as the current century, the courts have heard arguments that without notification of the debtor the assignment was not valid. In the United States, by 1949 the majority of state governments had adopted a rule that the debtor did not have to be notified, thus opening up the possibility of non-notification factoring arrangements.

Originally the industry took physical possession of the goods, provided cash advances to the producer, financed the credit extended to the buyer and insured the credit strength of the buyer. In England the control over the trade thus obtained resulted in an Act of Parliament in 1696 to mitigate the monopoly power of the factors. With the development of larger firms who built their own sales forces, distribution channels, and knowledge of the financial strength of their customers, the needs for factoring services were reshaped and the industry became more specialized.

By the twentieth century in the United States factoring was still the predominant form of financing working capital for the then-high-growth-rate textile industry. In part this occurred because of the structure of the US banking system with its myriad of small banks and consequent limitations on the amount that could be advanced prudently by any one of them to a firm. In Canada, with its national banks the limitations were far less restrictive and thus factoring did not develop as widely as in the US. Even then, factoring also became the dominant form of financing in the Canadian textile industry.

By the first decade of the 21st century, a basic public policy rationale for factoring remains that the product is well-suited to the demands of innovative, rapidly growing firms critical to economic growth. A second public policy rationale is allowing fundamentally good business to be spared the costly, time-consuming trials and tribulations of bankruptcy protection for suppliers, employees, and customers or to provide a source of funds during the process of restructuring the firm so that it can survive and grow.