Factor Funding
Houston PO financing and factoring since 1996: $100,000 to $10 million per order, fee about 5% of funds used (~41% APR in our 45-day example), buyer credit decides, 24 to 48 hour decisions.
Rates & Cost
What the financing costs, normalized so lenders can be compared.
Repayment Terms
How and how fast you pay it back, and how flexible it is.
Eligibility & Access
Who qualifies and what you have to put on the line.
Speed & Service
How fast you get funded and how the lender treats you.
Company Verification
Who actually stands behind the lender: legal entity, registration, and how long the business and its website have existed. Checked against public registries.
Best for: U.S. importers, distributors and manufacturers with a $100,000+ order from a creditworthy buyer.
Not for: Service firms, consignment sellers or thin-margin orders.
Lender List verdict: Factor Funding is a 30-year-old, BBB A+ Houston factor that pays suppliers and collects from buyers. Its PO fee of about 5% of funds used is reasonable on a 30- to 60-day order, but the time basis is unstated, so get it in writing.
Factor Funding at a glance
| Item | Detail |
|---|---|
| Lender type | Private factoring company (not a bank) |
| Founded / HQ | 1996, Houston, TX |
| PO amounts | $100,000 to $10 million |
| Cost | About 5% of funds used (PO); 1% to 3% per 30 days (factoring) |
| Funding speed | Decision in 24 to 48 hours; PO funding averages 7 to 10 days |
| Status | Active |
What is Factor Funding?
Factor Funding is a Houston factoring company, privately held and led by President Daniel Eke, that has advanced cash against receivables since 1996. It lists nine product lines with eight professionals (PitchBook) and does not disclose its source of funds.
How Factor Funding's purchase order financing works
Factor Funding pays up to 100% of your goods cost on finished goods, or up to 70% of the order's value when it funds production, then recovers its money from your customer's payment.
- Your buyer sends a non-cancellable purchase order, ideally for finished goods.
- You apply and usually get a decision in 24 to 48 hours.
- Factor Funding pays your supplier by check, wire or letter of credit.
- Goods ship; Factor Funding collects from your buyer and sends you the margin minus its advance and fee.
Factor Funding advance rate, factor fee, and recourse
Factor Funding charges about 5% of PO funds used, plus ancillary costs, without stating the period covered.
Worked example: a $100,000 order with a $65,000 supplier bill funded in full. A 5% fee is $3,250, so you keep $31,750 of margin. Assuming the order cycle takes 45 days, that equals about 41% simple annualized, or about 49% compounded.
For invoice factoring, its FAQ quotes 1% to 3% per 30 days, while its pricing page lists 0.07% to 0.1% per day. There is no term commitment; reserves are released on the 15th and 30th.
Factor Funding requirements
Factor Funding weighs your buyer's credit over yours and accepts startups.
| Requirement | Factor Funding minimum |
|---|---|
| Customer creditworthiness | Registered, creditworthy buyer |
| Order type | Pre-sold, non-cancellable, not consignment; finished goods preferred |
| Order size | $100,000 |
| Personal credit | Not a major factor |
| Personal guarantee | Some form of guarantee required |
| Industries excluded | Lender does not publish |
Frequently asked questions about Factor Funding
Is Factor Funding Legit? Yes, by the evidence. Factor Funding has operated from Houston since May 1996 and has been BBB accredited since January 2006 with an A+ rating, but has no BBB customer reviews or independent review-site ratings. A limited search found no regulatory actions.
Is Factor Funding Recourse or Non-Recourse? Both structures exist, and the contract decides which one you get. On a recourse account you must buy back unpaid invoices or let them be charged against your reserve; non-recourse shifts some losses to Factor Funding under conditions it does not spell out.
Will My Customers Know I'm Using Factor Funding? Yes. Factor Funding sends each customer whose invoice it funds an official notice telling them to send payment to its address instead of yours. Customers whose invoices you keep are never contacted, so those relationships stay exactly as they were.
How Fast Does Factor Funding Fund a Purchase Order? Approval usually takes 24 to 48 hours, and PO funding averages 7 to 10 days, though some deals close in one day and others take over 90. Repeat clients usually move faster, and factoring accounts take about three days to open.
Compare purchase order financing lenders on Lender List, including King Trade Capital and Star Funding.
Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.
Best for: U.S. importers, distributors and manufacturers with a $100,000+ order from a creditworthy buyer.
Not for: Service firms, consignment sellers or thin-margin orders.
Lender List verdict: Factor Funding is a 30-year-old, BBB A+ Houston factor that pays suppliers and collects from buyers. Its PO fee of about 5% of funds used is reasonable on a 30- to 60-day order, but the time basis is unstated, so get it in writing.
Factor Funding at a glance
| Item | Detail |
|---|---|
| Lender type | Private factoring company (not a bank) |
| Founded / HQ | 1996, Houston, TX |
| PO amounts | $100,000 to $10 million |
| Cost | About 5% of funds used (PO); 1% to 3% per 30 days (factoring) |
| Funding speed | Decision in 24 to 48 hours; PO funding averages 7 to 10 days |
| Status | Active |
What is Factor Funding?
Factor Funding is a Houston factoring company, privately held and led by President Daniel Eke, that has advanced cash against receivables since 1996. It lists nine product lines with eight professionals (PitchBook) and does not disclose its source of funds.
How Factor Funding's purchase order financing works
Factor Funding pays up to 100% of your goods cost on finished goods, or up to 70% of the order's value when it funds production, then recovers its money from your customer's payment.
- Your buyer sends a non-cancellable purchase order, ideally for finished goods.
- You apply and usually get a decision in 24 to 48 hours.
- Factor Funding pays your supplier by check, wire or letter of credit.
- Goods ship; Factor Funding collects from your buyer and sends you the margin minus its advance and fee.
Factor Funding advance rate, factor fee, and recourse
Factor Funding charges about 5% of PO funds used, plus ancillary costs, without stating the period covered.
Worked example: a $100,000 order with a $65,000 supplier bill funded in full. A 5% fee is $3,250, so you keep $31,750 of margin. Assuming the order cycle takes 45 days, that equals about 41% simple annualized, or about 49% compounded.
For invoice factoring, its FAQ quotes 1% to 3% per 30 days, while its pricing page lists 0.07% to 0.1% per day. There is no term commitment; reserves are released on the 15th and 30th.
Factor Funding requirements
Factor Funding weighs your buyer's credit over yours and accepts startups.
| Requirement | Factor Funding minimum |
|---|---|
| Customer creditworthiness | Registered, creditworthy buyer |
| Order type | Pre-sold, non-cancellable, not consignment; finished goods preferred |
| Order size | $100,000 |
| Personal credit | Not a major factor |
| Personal guarantee | Some form of guarantee required |
| Industries excluded | Lender does not publish |
Frequently asked questions about Factor Funding
Is Factor Funding Legit? Yes, by the evidence. Factor Funding has operated from Houston since May 1996 and has been BBB accredited since January 2006 with an A+ rating, but has no BBB customer reviews or independent review-site ratings. A limited search found no regulatory actions.
Is Factor Funding Recourse or Non-Recourse? Both structures exist, and the contract decides which one you get. On a recourse account you must buy back unpaid invoices or let them be charged against your reserve; non-recourse shifts some losses to Factor Funding under conditions it does not spell out.
Will My Customers Know I'm Using Factor Funding? Yes. Factor Funding sends each customer whose invoice it funds an official notice telling them to send payment to its address instead of yours. Customers whose invoices you keep are never contacted, so those relationships stay exactly as they were.
How Fast Does Factor Funding Fund a Purchase Order? Approval usually takes 24 to 48 hours, and PO funding averages 7 to 10 days, though some deals close in one day and others take over 90. Repeat clients usually move faster, and factoring accounts take about three days to open.
Compare purchase order financing lenders on Lender List, including King Trade Capital and Star Funding.
Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.
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