Finance Factors Mortgage Lender Review
If you’re looking for a mortgage lender, it’s worth taking a look at Finance Factors. This mortgage lender offers competitive rates and flexible payment plans. The company is a subsidiary of Finance Enterprises, Ltd., which is also a major competitor. The company’s mission is to help families achieve homeownership, and help real estate investors build wealth.
Finance Factors is a brick-and-mortar bank with 13 locations, as well as a web app that offers a simple online banking experience. The bank has an excellent rating with consumers and has few complaints filed with the Consumer Financial Protection Bureau. It manages $566 million in assets and $465 million in deposits. It is FDIC-insured and a member of the Federal Deposit Insurance Corporation.
Finance factors earn a fee when companies sell their receivables to them. The amount of fee varies, depending on the terms of the agreement between the factor and the company selling the receivables. The fee can be based on the receivables’ outstanding time. Moreover, the financial institution will usually require the company to pay an additional amount if the customer defaults.
Finance factors are typically expensive, but they can improve a company’s cash flow. They provide financing to companies that have slow turnover or rapid growth, and often purchase uncollectible receivables at discounted rates. Typically, the company will sell its receivables to a finance provider called a factor, which advances the money in exchange for receiving payment from the customer.