Never let a lack of working
capital slow your business down again . . .
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 involvingbusiness-to-business or business-to-government
transactions.
What is
Factoring? Factoring is
not a loan and differs from 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
companieshave 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.
Do
you operate a profitable business that is occasionally short
of cash?
Is
too much of your money tied up in 30, 45, 60 day terms to your
customers? Would your business benefit
from a "credit line" based on your receivables (and no other
collateral) which you could draw upon when needed?
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:
* Flexible and SIMPLIFIED funding programs
*
Easy applications
* Quick approvals
Advantages of Factoring
Fast
& Easy - Initial funding in 2 - 4 business days Ongoing
funding can be done in 24 hours Based
on your customer's creditworthiness - not yours No
long-term contracts are required Flexible
- you choose which invoices you offer for sale You
can use the money however you want Unlimited
source of operating cash - grows as sales grow
How does Accounts Receivables
Management work?
Once your account has been opened, the following steps are the
typical scenario:
1.
An invoice is created for goods or services delivered.
2.
A copy of the invoice is submitted via fax or email.
3.
The factor makes sure your customer is creditworthy, willing
and able to pay the invoice when due.
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)
5.
Factor does administrative work of collecting payment,
accounting, etc.
6.
Payment is remitted to factor, via PO box, when due.
7.
Balance is remitted to you, less the discount fee. (Note-your
discount fee will be pre-determined with quote)
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.
Supplier Guarantee Funding:
An alternative to Purchase Order Financing (PO Funding) that
offers more flexibility and less expensive funding to
businesses.
Do
you operate a profitable business that is occasionally short
of cash?
