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Your company will bill your customers in the usual way, along with sending
us a copy of the invoices. Lightning Capital will then advance your business up to
90% of the face amount of the invoices. We then take the responsibility for collecting payment from your customers.
Once Lightning Capital is paid on the invoices, we will release to your company the reserved amount of the
invoices including taxes, minus the appropriate discount.
The discount is based not on the strength of your company but rather on the quality of your accounts. The
discount fluctuates according to the creditworthiness and performance of your receivables. The
discounts can be quite low, depending on the level of risk involved.
Once your account has been set up, cash can be advanced on your invoices and can be wire transferred to your bank account
within 24 hours, sometimes the same day.
When you use our services, you do not incur any debt, and there are no monthly payments. You control your cash flow by determining how much to factor, and when.
When compared to the cost of maintaining receivables for 30 days or more, and the administrative expense associated with collections, factoring is a wise alternative to traditional financing from banks.
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