Pros

One of Magnolia Financial’s greatest attributes is they provide funding incredibly quickly once you factor an invoice. You can use this capital to meet payroll, invest in new technologies, or anything else that might help grow your business.

Magnolia Financial is also strong in that their discount rate is among the lowest out of the companies we looked into. This means that business will get more of the money from their invoices to invest in growing their business.

Finally, they have a very professional and easy to use website. Our research indicates that this is a solid predictor of the type of service customers receive, and helps them move up a bit relative to other companies we reviewed.

Cons

However, there are some issues with Magnolia Financial. The first is they only provide recourse factoring, leaving your company at risk of a large chargeback if your client doesn’t pay their bill. This situation can result in cash-on-hand issues for many businesses and we don’t recommend if non-recourse factoring is an option.

Magnolia Financial also loses points because they don’t present themselves as an up-to-date, modern company should. This perception may not impact their service, but it does make us view everything else with suspicion.

Finally, they have one of the higher discount rates out of the companies we looked at, and that means that companies are paying more for factoring services. As a result, they’ll have less capital to develop and grow their business.