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Accounts Receivable funding or Factoring is designed for
businesses that want to improve their cash flow by not waiting
30,60, 90 days for a customer to pay. Factoring is used in
almost every industry today involving business-to-business or
business-to-government transactions.
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What is Factoring?
Factoring is not a loan and differs from institutional lending
or bank borrowing in that your A/R (invoices) are sold at a
discount rather than merely offered as collateral. It's the same
concept as offering a discount for early payment of your invoice
(2% 10, Net 30 days), only now your money typically in 24 hours
and it doesn't depend on if your client decides to pay early.
New businesses and fast growing companies have
a huge demand for cash flow and working capital. And chances are
their A/R is growing faster than their cash flow. Until growth
levels off, they can never catch up, and worse yet are unable to
grow to their full business potential. |

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Do you operate a profitable business that is occasionally short
of cash? |
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Is too much of your money tied up in 30, 45, 60 day terms to
your customers?
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Would your business benefit from a "credit line" based on your
receivables (and no other collateral) which you could draw upon
when needed? |
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Now, companies can have access to the working capital they need
for growth or survival. Even if your bank has told you no.
We offer: |
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Flexible and SIMPLIFIED funding programs |
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Easy applications |
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Quick approvals |
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Advantages of Factoring |
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Fast & Easy - Initial funding in 2 - 4 business days |
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Ongoing funding can be done in 24 hours |
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Based on your customer's creditworthiness - not yours |
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No long-term contracts are required |
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Flexible - you choose which invoices you offer for sale |
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You can use the money however you want |
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Unlimited source of operating cash - grows as sales grow |
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How does Accounts Receivables Management work? |
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Once your account has been opened, the following steps are the
typical scenario: |
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1. |
An invoice is created for goods or services delivered. |
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2. |
A copy of the invoice is submitted via fax or email. |
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3. |
The factor makes sure your customer is creditworthy, willing and
able to pay the invoice when due. |
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4. |
Cash advance (usually 60 - 85%) is wired to you. (Note-your cash
advance percentage will be pre-determined based on your actual
funding needs) |
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5. |
Factor does administrative work of collecting payment,
accounting, etc. |
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6. |
Payment is remitted to factor, via PO box, when due. |
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7. |
Balance is remitted to you, less the discount fee. (Note-your
discount fee will be pre-determined with quote) |
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What does it cost?
Discount rates and advance amounts are established by a
combination of the following: monthly volume, your customer's
credit worthiness, invoice sizes, and average payment cycle.
The submission of a simple 2-page application along with your
A/R aging report will allow us to quote you a discount rate &
the percentage of your invoices that will be advanced.
Still have questions ...
Frequently Asked Questions |
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