Chart 1: Sample Income Statement XYZ Manufacturing Company
Before Factoring With Factoring Gross Revenues 100,000 200,000 Cost of Goods Sold   60,000 60% 120,000 60% Gross Profits   40,000 40% 80,000 40% Less: Variable Expenses 15,000 15% 30,000 15% Fixed Expenses 20,000 20% 20,000 10% Overhead 35,000 35% 50,000 25% Cost of Factoring   0   5,000 Total Expenses 35,000 35% 55,000 28% Net Profit 5,000 5% 25,000 13%
What Is Factoring?