FAQs

FashionFactoring provides a variety of funding options tailored specifically for the fashion, apparel, and textile industries. This includes services like invoice factoring and purchase order financing. We design our solutions specifically for designers, manufacturers, and distributors. Additionally, we offer export factoring for international exporters selling to the U.S., Canada, and other select markets.

Invoice factoring is the practice of selling outstanding invoices to a factoring company, referred to as a factor. This enables businesses to obtain immediate cash flow rather than waiting for customers to settle their invoices. This process typically involves the factor advancing a percentage of the invoice amount upfront, while the remaining balance, minus the factoring fee, is paid to the business once the customer has settled the invoice. Companies can therefore manage their cash flow more effectively and seize growth opportunities as they arise.

Yes, we work with startups. Invoice factoring is available for startup fashion designers, as well as for apparel, garment, and textile businesses that are operational and have established relationships with their buyers and suppliers. These businesses must have invoices ready for factoring. Factoring serves as a vital financial tool for companies that extend credit terms to their customers, which is critical for maintaining competitiveness. This financial resource can support your growth when specific buyers request credit for their orders.

Purchase order financing enables companies to obtain funds to pay suppliers for orders made by their buyers. This financing allows them to fulfill large orders without putting a strain on their cash flow, ultimately helping them grow and respond effectively to customer demand. Additionally, an invoice factoring facility is set up to pay off the advance received for purchase order funding once the product has been delivered to the buyer.

Yes, we provide both domestic and international financial services to companies in the U.S. and Canada. Additionally, we offer export factoring to businesses in selected markets across Asia, Australia, Europe, and the Middle East. Our team has a strong understanding of the specific regulations and requirements that vary by region.

Yes, it depends on the specific situation. Our DIP financing product is only available to companies located in the United States. Debtor-in-possession (DIP) financing is especially designed for businesses that are experiencing financial difficulties, considering Chapter 11 bankruptcy, or that have already begun the filing process.

Yes. Revenue-based business loans are well-suited for fashion, apparel, and textile companies seeking a working capital facility to address urgent business expenses, including payroll and other operating costs. These loans can be funded in as little as 2-3 business days.

The standard minimum amount for domestic customers in the U.S. and Canada is $30,000, while the minimum for international factoring is set at $200,000. Maximum amounts can reach up to $50 million, depending on specific circumstances. This range offers flexibility to address cash flow needs related to clients' receivables and is designed to align with their business growth requirements.

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