How is Paygevity Different than a Factor?

Johnathan Lugo Fintech

Paygevity seeks to disrupt the factoring industry –just like Uber™ disrupted the Yellow Taxi Industry, and AirBnB™ disrupted the Hotel Industry.

How is Paygevity different than a Factor?

A Factor is a Lender, as Paygevity is a “Prompt” Payment Processor. 

On the one hand, Factors are comprised of commercial banks, specialty finance companies, and hedge funds that charge high interest rates and high underwriting fees on small business loans. In addition, Factors typically ask small business owners to post Personal Guarantees and historical audits for the past three years in order to receive funds. Paygevity, on the other hand, is a prompt payment processing company that charges small businesses a one-time nominal processing fee.

Another important distinction is that a Factor sells and markets its lending products directly to the supplier, while Paygevity sells & markets its PromptPay™ innovation to the suppliers and the large corporations. This is why Paygevity’s business model is much more scalable than than that of a Factor.