Access growth capital by turning your invoices into cash. Our flexible and scalable cash flow solution allows your company to quickly take advantage of growth opportunities.
It is important to work with someone you trust. As your banking partner, we have a wide range of credit products tailored to meet your unique capital and growth needs.
- Competitive rates & favorable terms
- No commitment or steep exit fees
- Lines ranging from $100,000 to $6,000,000 with advance rates up to 90%
- Comprehensive banking relationship, with a dedicated relationship manager
- Local decision-making
- Working capital solution providing a clear path to transition into a conventional banking facility
- Ideal for startup companies or companies with limited history or track record
- Can accommodate high growth, or turnaround, highly-leveraged companies
- 5Star Bank Advantage: Factoring facility is offered as a component of a comprehensive banking relationship, catering to all your business needs. This offers a gateway to conventional financing once you have achieved your growth and profitability goals.
- 5Star Bank Advantage: ABL facility is offered as a component of a comprehensive banking relationship, catering to all your business needs. This offers a gateway to conventional financing once you have achieved your growth and profitability goals.
- Financing 5Star Bank Advantage: Contractors have unique challenges as well as vast opportunities for growth and success. Understanding the industry and what it takes to meet your financial needs requires expertise and know-how. With local decision-making, quick turnaround and competitive pricing, our understanding of government contractors set 5Star Bank apart from other banks.
For more information, please contact:
Tia Kavas, CAEF
Senior Vice President –
Manager, Business Credit
Direct line: 720.571.6054
By partnering with 5Star Bank, you gain more than a factoring relationship, you obtain the added benefit of:
- A comprehensive banking relationship, which includes your own relationship manager
- A track record with a local bank
- A clear pathway into a conventional line of credit
- A partnership with a true local bank committed to fostering growth in the local community
Q: What is Invoice Factoring?
A: Invoice factoring is the purchase of business-to-business accounts receivable for cash. After invoices are submitted to 5Star Bank and verified, they are funded within 24 hours.
- No taking on debt
- No waiting on your slow paying customers
- No worrying about how to meet payroll, fund growth, serve larger clients, or accommodate big orders
Q: Is Factoring right for me?
A: Factoring helps companies who may be experiencing the following situations:
- Cash flow shortages due to a slow turnover in account receivables
- A fast growing company whose past earnings and sales histories will not justify traditional bank loan financing
- Growing faster than cash flow can accommodate
- Bankruptcy or tax issues that make conventional financing not an option at this time
Q: What are some industries that may benefit from a factoring product?
- Professional Service Companies; such as staffing, consulting, and contracting
- Value-added Resale; ranging from software to products
- Government Contracting/ Procurement
- Manufacturing/ Distributing
- If your business does not fall into the categories above, factoring might still be beneficial to your company! Contact us to discuss how we can help you meet your business’ financial needs.
Q: Is Factoring expensive at 5Star Bank?
A: Depending on the size and credit profile of the deal, our pricing can be very competitive. Generally, annual pricing will range from the high single digits to mid-double digits. 5Star Business Credit will typically be more reasonably priced and will have better terms than any independent factoring company.
Q: Are there hidden costs or fees?
A: No! You will know exactly what your fees will be up front at 5Star Bank. We are happy to discuss these with you so you feel comfortable knowing you are making the right financial decision for your company.
Q: Will my customers think I’m going out of business?
A: No! You simply inform your customers of a change in payment information to reflect your new lockbox at 5Star Bank. All invoice verifications will generally mirror the method that you typically use. We strive to represent ourselves to your customers on behalf of you in a manner that is mutually acceptable.
Q: Do I have to factor all of my invoices?
A: No! You decide which invoices you factor according to your company’s financial needs.
- You deliver goods or perform a service and generate an invoice
- You submit the invoice to 5Star Bank for funding
- You receive an advance, typically 80-90% of invoice face value, deposited directly into your 5Star Bank business checking account
- Once your account debtor mails the invoice payment to 5Star Bank, you’ll receive the reserve, minus a small factoring fee, deposited directly into your 5Star Bank business checking account