WebBank Invoice Factoring

 

WebBank Factoring Information:

• WebBank Headquarters: Salt Lake City, UT
• FDIC Insured: Yes
• In Business Since: 1997
• Direct Lender: Yes

About WebBank

WebBank, is an industrial bank based in Salt Lake City, Utah. They offer banking services for both consumer and commercial customers. They offer closed end and revolving private label loans and bank card financing programs. And of course, they accept deposits which are federally insured.

For consumers, WebBank makes a variety loans and accepts customer deposits. On the commercial side, their Industrial Bank Charter allows them to partner with other financial institutions and offer niche financing solutions for businesses of all sizes. These options help support capital investments and fund ventures.

WebBank is a member of the Utah Banking Association and FDIC insured for accounts up to $250,000. They are also a member of the Commercial Finance Association (CFA).

Through their Strategic Partnership Group, they offer niche products including peer-to-peer loans and debt consolidation loans. They have a number of subsidiaries including Working Capital Solutions.

WebBank Invoice Factoring

Through it’s subsidiary, Working Capital Solutions, WebBank provides alternative financing solutions for small and medium sized businesses, looking to improve cash flow. These solutions include invoice factoring and asset based lending.

An invoice factoring company, known as the factor, purchases outstanding invoices at a discount to their face value. Doing so provides near-immediate funding, while the invoices remain unpaid by the account debtors. WebBank will advance up to 90%, sometimes more, as quickly as the same day. When the invoice does get paid to WebBank, they will release the remaining reserve amount, less their factoring fee.

WCS only provides recourse factoring, meaning that even though the factoring company has purchased the invoices, you still owe the advanced amount to the factor. Your business retains the credit risk of your customer. While this is less than ideal, the factoring fees are lower and that extra savings can allow your business to purchase additional inventory or capitalize on a strategic opportunity.

WebBank Accounts Receivable Factoring Serves the Following Industries:

• Automotive
• Energy
• Food and Beverage
• Manufacturing
• Retail
• Temp Staffing
• Technology

One benefit of using a bank that doubles as your factor is the access to funding which provides a low cost of capital. When this is the case, the factor can often pass the savings along to their customer in the form of low factoring fees.