Ozarks Capital Funding

Many companies who would like to factor invoices as a way to acquire working capital may think that liens iimposed by the IRS from delinquent payroll taxes will impede their desires.

While the factoring company must have a clear title to the receivables because that is their only collateral, the IRS will often subordinate their interest if a deal can be worked out.  Such an arrangement, called a “subordination agreement”, would require the factoring company to send the IRS a payment from each advance.  The remainder would go to the client for them to use to pay bills, payroll, or any other purpose.

We have worked with the IRS as well as banks when there is an existing lien in place.  Call us at (800) 560-4420 with any questions.