How to Run as Small Factoring Business
Term Sheet from ABC Financial Services to Client ABC Financial Services proposes the following preliminary terms for factoring receivables: Initial credit line of $______________. $___ charge for ACH electronic direct transactions.  Bank wires $___ client cost (additional charges from your bank will be incurred to receive bank wires). Recourse period of ______ days. Client with option to request chargeback sooner if desired. Advance Rate and Reserves ____% Advance on all approved invoices, less ____% deposit to Escrow Reserve until cap is reached. Escrow Reserve cap equals of ____% of credit line. Discount Rates Days out Percent of gross invoice amount 0 - ____ days ____% Each ____ days thereafter ____% additional Minimum discount of $_______ per invoice These terms are offered provided account is established by ___/___/___. Agreed and accepted: ___________________________ ABC Financial Services Company Name ___________________________ John Q. Factor by (name) by ___________________________ President Title Title ___________________________ ___________________________ Signature Signature