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1st PMF Bancorp Invoice Factoring Review
PMF Bancorp is a working capital company that offers invoice factoring and other services. They have a mix of features that will be appealing to some merchants, but still have some issues to overcome before they can be the best invoice factoring company.
One of the biggest advantages to factoring with 1st PMF Bancorp is that they offer nonrecourse factoring. This means that companies won’t be forced to pay back invoices that 1st PMF isn’t able to collect on. They will factor up to $5 million per month, which is on the higher end of the factoring ceiling we’ve seen. 1st PMF also offers online applications, which facilitate a 24 hour turnaround on the approval process. Customer service includes a dedicated advisor to help you make business decisions regarding your capital flow. Their phone and live chat support were good, and the customer support agents are helpful, informative, and friendly. Finally, 1st PMF Bancorp will purchase invoices that are up to 90 days overdue. Their 1% discount rate is on the lower end of invoice factoring companies we looked at.
The biggest disadvantage to working with PMF Bancorp is their fees. Customers should expect to pay both a startup fee and a termination fee. The $500 startup fee is particularly aggressive, and out of line with what the rest of the industry expects. They also only offer 80% initial funding which is lower than the top companies that we reviewed. Companies must factor at least $15,000 worth of invoices each month for 1st PMF Bancorp services, and there is a 2 year minimum term length for their contracts.
1st PMF has a number of things going for it, but the high fees, two year contract length, and $15,000 minimum means that they aren’t going to be the right option for many companies.