What Are Factor Loans?
A factor loan (also known as invoice factoring) is a type of business financing where you sell your outstanding invoices to a factoring company at a small discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for your customers to pay, you get the money now — typically within 24–48 hours.
This is not a loan in the traditional sense. You're not borrowing money; you're advancing money that is already owed to you. This means there's no new debt added to your balance sheet, and there are no monthly loan payments to worry about.
How Does the Factor Loan Process Work?
- You complete a job and issue an invoice to your business customer for, say, $10,000 (net 60 days).
- You submit the invoice to TGIfactoring.
- We advance you up to 90% of the invoice value ($9,000) within 24–48 hours.
- Your customer pays TGIfactoring directly when the invoice is due.
- We remit the remaining balance minus a small factoring fee (typically 1–5%).
Who Should Use Factor Loans?
Factor loans are ideal for business-to-business (B2B) companies in industries such as:
✓ Trucking & Freight
✓ Staffing Agencies
✓ Manufacturing
✓ Construction
✓ Healthcare (Medical)
✓ Government Contracting
✓ Professional Services
✓ Wholesale Trade
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