Factoring is a short-term financing tool where CAM purchases your school’s future state aid and advances the capital for your use now. Factoring is sometimes called receivables sales.

Charter schools are funded by the state government. The state decides what amount to fund your school based on your student enrollment. Your reported enrollment generates what we call “state-aid.” State-aid, while guaranteed by the state, can be unreliable or delayed, or deferred due to economic crisis, and often does not match your school’s operational needs or align with your enrollment growth.

Factoring is when we purchase the school’s state-aid, at a discount, and advance the funds to you now as working capital. When the state aid is eventually disbursed, CAM collects what’s due and passes through the remaining balance to the school.

Factoring is a powerful tool that can help bridge cash flow gaps and fuel your school’s growth. It is fast, reliable, and low-cost. Talk to us about rates and how factoring can work for your school.

Factoring – Step by Step

CAM’s factoring program is the fastest, most efficient way your school can receive funding. Here’s how it works. First, you apply for funding via the online application or by contacting us directly. We then do a call to discuss your funding needs and conduct due diligence. We then do a review and present a proposal with terms and conditions. If you approve the proposal, we send agreements and work with you on closing items. Once everything is completed, we wire the funds to your school’s account. From application to funding, the process can take five to ten business days.

1. Apply for Funding

You can apply online or contact us directly to request funding. Our client services team will respond to you within 1 business day.

2. CAM Review

Once we learn more about your school and your needs, we will request documents for due diligence. These include school financials, governance information, enrollment data, etc. Once we receive all the information, CAM will review. We may have additional questions or requests.

3. CAM Proposal

We will present a proposal which will delineate the terms of the offer. We will go over the proposal with you in detail and make any adjustments required.

4. Agreements and Closing Items

If you decide to proceed, we will circulate agreements for review and execution while you arrange for board approval as needed. There will be additional closing items depending on the situation including but not limited to opening control accounts, lockboxes, or redirecting state-aid.

5. Your School is Funded

Once all agreements are signed and the closing items are completed, we will wire the funds to your school’s account.

Talk to us about this program.

Factoring Timeline

Funding Programs

factoring Factoring

Factoring is a short-term financing tool where CAM purchases your school’s future state-aid and advances the capital to you now. Factoring is great to fuel enrollment growth, mitigate state-aid deferrals, and bridge cash gaps. Although factoring is fast and reliable, we recommend using it for urgent situations and as a last resort.

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lines-of-credit Revolving Line of Credit

This is CAM’s flagship program. A line of credit is a revolving loan that runs between 1 to 5 years. Once the line is open, your school can drawdown at any time. The school makes monthly payments based on an average outstanding balance. Our revolving line of credit is low-cost, flexible, and ideal for general working capital purposes.

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term-loans Term Loans

In a term loan, the full loan amount is funded upfront. The school makes fixed monthly payments amortized over the duration of the loan. Term loans are between 1 and 5 years and are ideal for capital projects like tenant improvements and other expansion purposes.

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start-up-capital Start-up Capital

Start-up capital is for new charters seeking seed money before launch. It is funded in the spring of the year zero. Start-up capital can be factoring or small term loans.

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Pre-Bond Financing Pre-Bond Financing

Pre-bond financing is a medium-term financing tool that helps bridge to a bond issuance. CAM loans your school the funds you need for pre-development and other bond issuance related costs. The bond then takes out CAM’s loan.

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Revenue Anticipation Notes Revenue Anticipation Notes

For charters with a proven track-record, the school can issue RANS via a public authority. CAM then buys the notes and funds your school. This is a medium to long term solution with the best rates.

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Talk to us about getting your school funded

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