apparel company

Last Updated on September 13, 2021

The apparel and textile industry in the United States faces its fair share of unique problems, much like other manufacturing industries. They’re often used to long payment terms and cash flow issues. This can be a major stressor on a growing, or established apparel business. That leaves many looking toward alternative cash flow financing options.

One of the best solutions for the apparel industry is invoice factoring services. altLINE and The Southern Bank have been helping customers improve cash flow since 1936. Because we’re a bank, not an independent factoring company like most others, we cut out the middle man. Our factoring services are more trusted, more affordable and all backed by the FDIC. We understand the unique challenges that face the apparel industry, and we’re prepared to help you meet your growing cash flow demands.

What is Factoring for Apparel?

Invoice factoring for apparel companies is the process of selling your outstanding invoices to a factor company in exchange for cash up front. This unlocks immediate cash flow from the invoices you’ve already billed to your customers, instead of waiting 30-90 days for payment. The factor typically advances between 80-90% of the total invoice value. Once the invoice is paid by your apparel customer, the factor will release the remainder to your business, minus a small factoring fee (typically 1-5%).

Why Factoring Works Well for the Apparel Industry

Apparel companies face long payment terms, high receivables and general cash flow issues required to maintain payroll and manufacturing operations. Because your customers are billed after completion or delivery of the work provided, they are an ideal fit for a factoring company.

Without additional cash flow, some apparel companies struggle or fail to stay afloat without sufficient and affordable financing. Invoice factoring allows apparel and textile businesses to extract cash immediately from their receivables, dramatically shortening the payment cycle.

What makes apparel factoring different from traditional bank financing?

Unlike a traditional bank loan, invoice factoring for apparel companies is technically not a loan at all. Its the purchase of an asset (your outstanding invoices) for a small fee (the factoring fee). That means it won’t affect your credit. The minimum requirements are also more accessible for factoring, giving access to businesses with limited operating history, lower credit scores or few assets to borrow against.

What are the benefits of factoring with altLINE?

We’re top-ranked by Investopedia, TheBalanceSMB,, Fundera and Merchant Maverick. Why do they rank us so well?

Our services are competitive:

  • Rates from 0.50%
  • Advances up to 90%
  • No Application Fee
  • No Hidden Fees (Ever)
  • Fast Approval
  • Local Customer Service

Our track record is strong:

  • In Business Since 1936
  • Over $600 Million in Funded Invoices
  • We’re a trusted community bank (and a factoring bank)

Want to find out if factoring is a good fit for your apparel company?

If your business is short on cash, but have lots of outstanding invoices, you might be a fit. To get a free quote, apply here or call (205) 607-0811 to speak with a sales representative today. We look forward to helping you grow.