Factoring Volume Requirements
Some factors have established monthly minimums requiring you to factor a certain amount/volume (e.g. $10,000 worth of invoices) per month. Depending on the factor's availability of funds or comfort-level, there may be limitations on the maximum amount you can factor over a certain period. Factors often set either monthly limits, or per customer volume limits. An example of the later scenario would be only allowing you to factor $10,000 a month in invoices for your customer, XYZ, Inc.
There are factors, however, that do not impose any volume requirements or monthly minimums, a benefit if factoring is used to beat seasonal variance.
|
To better fit the needs of a diverse client list, Hamilton sets monthly volume requirements based on the individual needs of its clients. For those clients requiring greater funding flexibility, Hamilton does not impose monthly volume requirements. This allows companies to factor as frequently as needed. For those clients were monthly volume will be consistently high and where flexibility is not a concern, Hamilton will impose a minimum monthly volume requirement in turn for a more aggressive fee structure. |
| < Online Guide Home |
Go to Next Article > |
Home | About | Factoring 101 | Programs | Brokers | News | Apply | Contact
