Benefits of a Gateway Line of Credit

high rise building With a Gateway Line of Credit, you can decide what invoices to assign, there are no hidden fees, and you pay only for the money you receive. Through the simple example below, you will see the benefits of a Gateway Line of Credit for yourself.

Assume a company wants an advance on $350,000. If the company were financed by Gateway or a factoring company, the borrower would be given a percentage of the money requested, in this case $280,000 (80% of $350,000). The monthly fee, however, would be determined very differently at the factoring company as compared to a Gateway Line of Credit.

coin At Gateway, we calculate the company's monthly fee by multiplying the advance ($280,000) by the monthly interest rate (2%). Therefore, this company would pay a monthly fee of $5,600.

Factoring companies, however, determine a company's monthly interest payment by multiplying the face value of the invoice ($350,000) by the monthly interest rate (2%), requiring the company to pay a monthly fee of $7,000.

The company would pay an extra $1,400 with the factoring company. In other words, this company would be paying for $70,000 it didn't receive.