Introducing Factor Financing Lenders and Their Services

Factor financing is a method of funding where a business sells its accounts receivable to a lender, also known as a factor, at a discount. This type of financing allows companies to receive immediate cash flow, which can be used to cover operational expenses, invest in growth, or manage cash flow gaps. Below is a summary of various factor financing lenders and their services:

Shopify Capital

Financing Type: Revenue-based
Channel Included: Shopify Only
Exclusive/Non-exclusive: Non-exclusive
Specialty: Cash advance
Requirements: Connect to Shopify
Description: Offers cash advances based on Shopify sales.
Target Customer: Shopify merchants
APR: 13%
Payback Term: 17% of daily sales until the principal and interest are paid off

ClearCo

Financing Type: Revenue-based
Channel Included: DTC Only
Exclusive/Non-exclusive: Non-exclusive
Specialty: Cash advance
Requirements: Connect to Facebook/Instagram, Shopify, Amazon, and QBO
Description: Provides cash advances to Shopify merchants.

Payability

Financing Type: Revenue-based
Channel Included: DTC Only
Exclusive/Non-exclusive: Non-exclusive
Specialty: Cash advance
Description: Offers cash advances based on online sales.
Target Customer: eCommerce merchants

Wayflyer

Financing Type: Revenue-based
Channel Included: DTC Only
Exclusive/Non-exclusive: Non-exclusive
Specialty: Cash advance
Requirements: At least $20,000 in MRR in one channel for at least three months
Description: Provides funding for eCommerce merchants.
Target Customer: eCommerce merchants
APR: 12% + 3% fee for $100,000

Outfund

Financing Type: Revenue-based
Channel Included: DTC Only
Exclusive/Non-exclusive: Non-exclusive
Specialty: Cash advance

Ampla

Financing Type: Revenue-based
Channel Included: DTC + Offline
Exclusive/Non-exclusive: Exclusive
Specialty: Line of Credit (LOC)
Requirements: Connect to Shopify, Amazon, and QBO
Description: Provides a credit line.
Credit Limit: 165% of online sales
APR: 15%
Payback Term: 16% of daily sales until paid in full (if taking 40% of the LOC); 40% of daily sales if taking the full LOC

Assembled Brands

Financing Type: Debt-based
Channel Included: DTC + Offline
Exclusive/Non-exclusive: Non-exclusive
Specialty: Working capital, inventory, PO financing
Description: Provides financing for working capital, inventory, and purchase orders.
Target Customer: DTC brands

Kickfurther

Financing Type: Debt-based
Channel Included: DTC + Offline
Exclusive/Non-exclusive: Non-exclusive
Specialty: Inventory financing
Requirements: Minimum $500,000 revenue
Target Customer: eCommerce merchants
Notes: Preferred solution if using 3PL.

Ready Capital

Financing Type: Debt-based
Channel Included: DTC + Offline
Exclusive/Non-exclusive: Non-exclusive
Specialty: SBA Loan

Express Trade Capital

Financing Type: Debt-based
Channel Included: DTC + Offline
Exclusive/Non-exclusive: Non-exclusive
Specialty: Working capital, inventory, PO financing

Settle

Financing Type: Debt-based
Channel Included: DTC + Offline
Exclusive/Non-exclusive: Exclusive
Specialty: Accounts payable financing (bill pay)
Requirements: Minimum $500,000 revenue

For businesses seeking to explore alternative financing options, contact alice.zhang@mypocketcfo.com to craft a strategy tailored to your specific scenario.