Our Model
Factoring Example
SELLER (OF INVOICE)
A business has completed a large order for a corporate client. The total amount owed by the corporate client is $50,000 and the payment is due in 30 days. The business needs the cash immediately to cover its own expenses, so they decide to sell the invoice to a factoring company.
BUYER (OF INVOICE DM Capital Group)
The factoring company DM Capital, agrees to buy the invoice for a discounted price of $48,000, which is 96% of the total amount owed.
CORPORATE CLIENT (Owes on Invoice)
Corporate client will send payment of $50,000 to factoring Company since they purchased the invoice