Primary Funding
Primary Funding is a privately held, Carlsbad-based alternative lender offering accounts receivable factoring, asset-based lines of credit, and bridge/term loans to small and mid-sized businesses in Southern California.
- Company typePrivate
- Founded1995
- HeadquartersSan Diego, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What Primary Funding does
Primary Funding Corporation is a privately held, founder-family-owned alternative lender headquartered in Carlsbad, California, founded in 1995 by Patricia Burns. The company provides three core products to small and mid-sized businesses: accounts receivable factoring (up to 90% same-day advance on invoice face value), asset-based revolving lines of credit secured by receivables, inventory, and equipment at 80–90% advance rates, and short-term bridge/term loans for time-sensitive growth initiatives. Pricing is quote-based and undisclosed, with no prepayment penalty and no long-term contract lock-ins; clients typically range from start-up through approximately $20 million in annual revenue and are concentrated in Southern California.
The company's go-to-market combines a sales-led direct channel (website Apply Now/Pre-Qualify funnel with a 3-step quiz, inside account executives assigned to each client) and a channel-partner network of bankers and brokers who refer prospects, with a documented philosophy of returning bank-ready clients to traditional lenders. In 2024 it transitioned its invoice factoring operations onto the FactorCloud web-based portal for client-facing invoice submission and reporting. The company has processed more than $1 billion in cumulative factored invoices since inception (as of late 2021), serves hundreds of businesses, and maintains roughly 11–50 employees.
Revenue is generated through transaction fees on factored invoices and interest/fees on the drawn portions of asset-based and term loan facilities. The business is family-managed — founder Patricia Burns retired in 2015; her son-in-law Jason Severson is CEO and her daughter Diane Severson is VP of HR/Administration; Richard Gendron, joined in 2016, is President. No external equity or debt funding rounds are disclosed.
Primary Funding firmographics
Firmographics- Name
- Primary Funding
- Legal name
- Primary Funding Corporation
- Website
- https://primaryfunding.com
- Company type
- Private
- Founded year
- 1995
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Primary Funding is a privately held, Carlsbad-based alternative lender offering accounts receivable factoring, asset-based lines of credit, and bridge/term loans to small and mid-sized businesses in Southern California.
- Ownership category
- akta.pro rank
Primary Funding industry classification
Industry- Product category
- Alternative Lending / Invoice Factoring
- NAICS
- Other Nondepository Credit Intermediation (52229)
- SIC
- Short-Term Business Credit Institutions (6153), Miscellaneous Business Credit Institution (6159)
- akta.pro primary industry
- Invoice Financing & Factoring (FSAKAGAC)
Keywords
Where Primary Funding is headquartered
LocationHeadquarters
- HQ city
- San Diego
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Primary Funding business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure
Revenue model
- Invoice Factoring / Accounts Receivable Financing: Primary revenue stream: businesses sell their accounts receivable invoices at a discount to Primary Funding in exchange for immediate cash (up to 90% advance against face value). The discount/fee charged on the invoice represents the revenue. Clients can factor invoices on an as-needed basis.
- Asset-Based Lines of Credit: Revolving credit lines secured by accounts receivable, inventory, and equipment. Revenue generated through interest and fees on the drawn portion of the credit facility.
- Bridge and Term Loans: Short-term bridge loans and term loans for unique growth opportunities not suited to factoring or asset-based lines. Revenue through interest and origination fees.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Other | Pay-as-you-go | Customized financing solutions tailored to individual business needs; no published tier structure |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels7 records
Primary Funding product offering
Product offeringCore offering
Primary Funding is a direct alternative lender that provides invoice factoring/accounts receivable financing, asset-based lines of credit, and bridge/term loans to small and mid-sized businesses that cannot access traditional bank financing. Businesses sell their accounts receivable invoices to Primary Funding at a discount, receiving up to 90% of the invoice face value (typically same day), while asset-based lines are secured against receivables, inventory, and equipment, and bridge/term loans fund unique growth opportunities.
Product overview
Primary Funding offers a suite of three alternative financing products designed for small to mid-sized businesses: Factoring/Accounts Receivable Financing (invoice factoring with up to 90% same-day advances), Asset Based Lines of Credit (secured revolving credit using A/R, inventory, and equipment at 80-90% advance rates), and Bridge and Term Loans (for unique growth opportunities not suited to traditional financing). All three products share a common infrastructure through the FactorCloud client portal and are designed to work together as a 'bridge to traditional financing' solution.
Differentiator
Problem solved
Functional benefit
Brands
- FactorCloud: Web-based operating platform for invoice factoring clients.
Products and services
- Accounts Receivable Financing / Invoice Factoring Primary Funding's invoice factoring service enables businesses to sell their accounts receivable at a discount for immediate cash, receiving up to 90% of the invoice face value typically on the same day. Designed for small to mid-sized businesses with cash flow gaps from extended customer payment terms (Net 30/45/60), including staffing agencies, apparel distributors, and growing companies.
- Asset Based Lines of Credit A revolving credit facility secured by accounts receivable, inventory, and equipment, offering advance rates of 80-90% on outstanding A/R plus additional amounts against other assets. Targeted at small to mid-sized businesses needing flexible ongoing access to working capital rather than one-time invoice advances.
- Bridge and Term Loans Short-term bridge loans and longer-term loans for unique growth opportunities that do not fit traditional factoring or asset-based lending profiles, providing capital injection for time-sensitive initiatives such as equipment purchases and growth investments. Targeted at small to mid-sized businesses with growth capital needs.
Quantifiable outcome
- Up to 90% advance on the face value of factored invoices, typically on the same day
- +4 more outcomes
Companies that use Primary Funding
Customer profileNamed customers4 records
Segments5 records
Ideal customer profiles3 records
Primary Funding technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature1 record
Primary Funding partnerships and signals
Strategic signalPartnerships
Twelve partnerships are on record, tiered minor and core.
- BeanVIVOminorBeanVIVO, a CPG brand founded in 2016 making healthy snacks and meal solutions from beans and legumes, partnered with Primary Funding for invoice factoring. Primary Funding's financing enabled BeanVIVO to scale operations and pursue growth objectives. The partnership is featured as a case study on Primary Funding's website.
- FactorCloudcorePrimary Funding partnered with FactorCloud in 2024 to transition its invoice factoring operating platform to a web-based tool. The FactorCloud portal enables clients to submit factoring requests, manage invoices, and access real-time reporting. The transition was effective July 1, 2024, representing a core technology modernization for the company's factoring operations.
- Diversified Business ResourcesminorIn late 2020, Primary Funding acquired Diversified Business Resources, a local factoring company. This acquisition supported Primary Funding's continued growth and expanded its client base and operational capacity.
- Union Bank of CaliforniacorePrimary Funding became a preferred finance partner with Union Bank of California, establishing a strong 20-year relationship that endured through the end of 2021. This partnership was a cornerstone of the company's referral-based business development strategy and resulted in helping hundreds of businesses secure financing solutions.
- Small Business Development Center (SBDC) in San DiegominorPrimary Funding supports the SBDC through sponsorships, workshops, and educational programming. The partnership provides small business education and resources to the San Diego business community.
- U.S. Small Business Administration (SBA)minorPrimary Funding maintains a partnership with the SBA, participating in educational events and providing financing resources to SBA-aligned small business clients.
- San Diego Regional Economic Development CorporationminorPrimary Funding partners with the San Diego Regional EDC to provide education, sponsorships, and workshops for San Diego-area businesses.
- South San Diego Small Business Development CenterminorPartnership with South San Diego SBDC to provide education, sponsorships, and workshops for south San Diego-area businesses.
- Chicano Federation - San DiegominorPrimary Funding partners with the Chicano Federation of San Diego, participating in community programs and providing business education. Fernando Ponce, a Primary Funding business development officer, serves on the Chicano Federation board.
- Risk Management AssociationminorPrimary Funding participates in Risk Management Association events and educational programming for the San Diego business and finance community.
- San Diego Sports InnovatorsminorPrimary Funding supports San Diego Sports Innovators through sponsorships and community involvement.
- Association for Corporate Growth (ACG)minorPrimary Funding participates in Association for Corporate Growth events, providing networking and educational opportunities for the San Diego business community.
Scale indicators5 records
Recent moves7 records
Expansion highlights5 records
Primary Funding competitors and assessment
Company assessmentDirect peers
- Fundbox: Fundbox provides invoice-based financing and revolving lines of credit to SMBs through a digital platform. It targets the same cash-flow-constrained SMBs that Primary Funding serves, but uses an automated, software-driven underwriting and onboarding experience.
- BlueVine: BlueVine offers online invoice factoring and business lines of credit targeting SMBs. It competes directly with Primary Funding's AR financing and asset-based lending products via a digital-first funnel, and serves a similar bank-rejected / cash-strapped SMB customer base.
- Riviera Finance: Riviera Finance is a long-established traditional factoring company serving SMBs with non-recourse factoring and AR financing. It is the most direct peer in terms of product mix, customer segment, and relationship-led distribution — and notably the firm where Primary Funding's founder began her factoring career in 1974.
- altLINE: altLINE (a division of The Southern Bank Company) is a factoring-focused online lender offering invoice factoring and ABL to SMBs. It is a direct competitor in non-recourse factoring with a comparable customer profile and bank referral philosophy.
- TAB Bank: TAB Bank is an FDIC-chartered online bank providing factoring, asset-based lending, and working capital lines to SMBs. It competes directly with Primary Funding across all three core product lines — factoring, ABL, and term loans — but operates at greater scale and across a national footprint.
- Triumph Business Capital: Triumph Business Capital is a factoring and asset-based lending company focused on SMBs across multiple industries, including staffing and transportation. It directly overlaps Primary Funding's factoring, ABL, and bridge/term loan offerings for SMBs with extended payment cycles.
- Capital Plus Financial: Capital Plus Financial is a small business factoring and commercial finance company offering invoice factoring, purchase order financing, and business credit lines. It directly overlaps with Primary Funding's product suite and SMB customer profile, with comparable regional operations.
Emerging players
- Lendio: Lendio operates a small-business lending marketplace that connects SMB applicants to a network of lenders, including factoring partners. While not a direct factor, it overlaps with Primary Funding's SMB customer acquisition funnel and competes for the same broker/referral relationships.
Others
- FactorCloud: FactorCloud is a software-as-a-service operating platform for invoice factoring companies. It is a vendor / ecosystem participant to Primary Funding rather than a competitor — Primary Funding transitioned to FactorCloud in July 2024 to manage client factoring requests and reporting.
Broad incumbents
- OnDeck (a Envestnet company): OnDeck is a broad SMB online lender offering term loans and lines of credit, and historically invoice-based products. It serves the same SMB segment but with a wider product portfolio, larger balance sheet, and national digital reach — putting it in the broad incumbent category relative to Primary Funding's regional focus.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
Primary Funding social profiles
Digital presencePrimary Funding financial estimates
Financial estimateRevenue estimate
Valuation estimate
Primary Funding leadership team
Management profileNumber of profiles
Profiles11 records
Primary Funding funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Primary Funding M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Primary Funding
What does Primary Funding do?
Primary Funding is a direct alternative lender that provides invoice factoring/accounts receivable financing, asset-based lines of credit, and bridge/term loans to small and mid-sized businesses that cannot access traditional bank financing. Businesses sell their accounts receivable invoices to Primary Funding at a discount, receiving up to 90% of the invoice face value (typically same day), while asset-based lines are secured against receivables, inventory, and equipment, and bridge/term loans fund unique growth opportunities.
Is Primary Funding a public or private company?
Primary Funding is a private company. It is classified as family owned and is currently operating.
When was Primary Funding founded?
Primary Funding was founded in 1995. It employs 11 to 50 people.
Where is Primary Funding based?
Primary Funding is headquartered in San Diego, United States, in the North America region.
How does Primary Funding make money?
Three revenue lines are on record. Invoice Factoring / Accounts Receivable Financing is the primary driver. The others are asset-Based Lines of Credit and bridge and Term Loans.
Who are Primary Funding's main competitors?
Direct peers on record are Fundbox, BlueVine, Riviera Finance, altLINE, TAB Bank, Triumph Business Capital and Capital Plus Financial. Lendio is listed as an emerging player. FactorCloud is listed as an others. OnDeck (a Envestnet company) is listed as a broad incumbent.
Does Primary Funding have an API?
No public API is recorded for Primary Funding.
What industry is Primary Funding in?
Primary Funding's product category is Alternative Lending / Invoice Factoring. Its primary akta.pro industry code is FSAKAGAC, Invoice Financing & Factoring. Its NAICS code is 52229 and its SIC code is 6153.