21st sounds like they're offering a great deal to Subs working with their Primes. Not bad. A better deal would be for the Prime to have the factor pay the Subs directly out of the advance so the Sub didn't have to factor at all (what could you do with that 4-6 % ???)! Just a thought. that some factors will do for their Prime clients (we will). However, double-dipping for the factor is a great way to make fees on one original invoice isn't it ?
If cash flow is the problem, try to correct it at the Primes level. The volume ($'s) the Prime can generate will probably be factored around 3% (with Olympic Credit Fund, anyway). Working together saves major dollars !!!
Jerry Ketsdever
(-REDACTED-)
www.ocf.com
