FACTORING
Need working capital?
An alternative to conventional working capital financing
Our goal is to deliver innovative working capital solutions that support your business and help you achieve full growth potential. To do this, we offer flexible sources of funding, like Factoring.
An innovative solution to energize your business
Factoring is accounts receivable financing provided through the discounted purchase of qualified accounts receivable, typically offered to rapidly growing companies or businesses transitioning financially. We purchase eligible invoices from a completed service, or accepted product, and essentially transfer the credit risk from you to your customer.
Accelerate Cash Flow
Get up to a 90% advance against the face amount of your chosen business-to-business accounts receivables invoices. The day after your customer pays, the remaining amount is deposited in your Amegy Bank operating account less the fee for selling the invoice.
Greater Flexibility
There are no contracts or financial performance covenants needed to factor invoices. This makes factoring ideal for new businesses, companies that are highly leveraged or tight on cash flow, seasonal businesses, and rapidly growing companies, to name a few.
Immediate Cash Without Debt
When you choose factoring you can access immediate short-term cash without taking on short or long-term debt, and without diluting equity by giving an ownership stake to an investor in exchange for cash. You also won’t lose money by giving discounts to customers to get them to pay more quickly.
How Does Factoring Work?
You issue an invoice to your customer
Whenever you sell a product or service, you’ll issue an invoice to your customer just as you normally would.
The invoice is sold to the bank
Instead of waiting 30 or more days for your customer to pay your invoice, you can sell your invoice to the bank and receive funds right away.
You receive the funds immediately
You can receive up to 90% of the face amount of your invoices and use those funds to grow your company, pay employees, and/or cover expenses.
Your customer pays the invoice through your lockbox
A lockbox allows us to handle your invoice collection paperwork. In addition, all of your customer’s information is available to them online whenever and wherever they need to see it.
We receive the customer payment, and you receive the reserve amount, less fees
Now, you’ll receive cash from your invoices in a few days, instead of waiting weeks for your customers to pay. It’s that simple.
FACTORING
The Amegy Bank Advantage
- Benefit from our more than 100 years of combined business credit experience
- Same day funding for qualified clients
- Unlike independent Business Credit providers, your funds are federally insured
- Our low cost of capital allows for competitive pricing
- Flexible program compared to big bank structures
- Advance rates up to 90% of the invoice amount
- No exit fees with 60-day notice and no long-term commitments
- Bridge financing that potentially leads to a traditional bank facility
Frequently Asked Questions
What if I’m already factoring?
That’s not a problem; we may be able to offer you a better structure and price from our bank-managed factoring facility.
Is factoring expensive?
It can be more expensive than traditional bank financing, but with the added flexibility, it’s a trade-off that many companies are willing to make. Plus, it’s viewed as bridge financing, not a long-term solution.
What if I already have an existing line of credit?
If you have an existing line of credit and you are happy with the structure and line amount, you should not look at making a change.
What if I don’t want my customers to know that I’m factoring?
Much of our contact is transparent to the customer. We will need to have invoice payments sent to a Amegy Bank lockbox and notification is made to the customer, usually the AP department, regarding the payment redirect. We also verify a certain percentage of outstanding invoices. This can be done via portal, email, or phone call. Every situation is different. Plus, having a bank-managed working capital facility gives a business credibility with its customers.
What if I don’t want to send my checks to a lockbox?
Our customers actually prefer using our lockbox as we handle their invoice collection paperwork, and all the information is available online wherever/whenever they need to see it.
Meet Our Team
Robin Gutierrez
Senior Vice President | Regional Factoring Sales Manager
Houston, TX
Brad Agee
Senior Vice President | A/R Relationship Manager
Houston, TX
Jacobi Hunter
Vice President | A/R Relationship Manager
Houston, TX
Kyla Randle
Assistant Vice President | Commercial/Business Banking Underwriter