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Receivables Factoring Apply Now
What is Factoring?
Factoring occurs when a business sells its accounts receivables. With this method of financing, you receive advance payments for your accounts receivable or invoices. You get cash right away. Receivables that can be factored are those that come from any company and government agencies and that have not been pledged to a lender or other entity.
Do You Need Factoring?
• Do you have too much of your available capital tied up in accounts receivable? • Are you profitable, but sometimes short of cash? • Can you benefit from having more capital without acquiring any debt or additional monthly payments? • Are you experiencing a growth in sales or production? • Do you need capital to make payroll, pay bills, pay contractors, pay vendors, or to buy supplies? • Could you benefit from paying your bills early? • Can you receive early payment discounts by paying your suppliers early? • Are you growing quickly and cannot afford to wait the usual 10 to 120 days that it takes to be paid? • Are you spending too much time tracking and collecting accounts receivable? • Do you miss growth opportunities because cash is tied up or you do not want to take on a partner?
Apply Now
Benefits of Factoring
• Receive your cash immediately instead of waiting for payments from your customers • Permanently fix cash flow difficulties • Increase working capital and pay bills, taxes, and staff on time • Get cash to expand your business • Protect and improve your business' credit rating • Get better credit terms • Receive ongoing financing without long term debt and monthly payments • Off balance sheet financing • Take advantage of early payment discounts, trade discounts and volume discounts by having the cash available • Take advantage of spur of the moment opportunities that require cash • Increase sales by offering credit terms to prospective customers • Receive capital that grows with your sales • Minimize or even eliminate collection time and expenses • Improve your credit rating • Receive asset protection: no one can make a claim against receivables you no longer own • Reduce overhead associated with processing invoices and handling collections • Offer credit terms to customers and stop offering early payment discounts to customers Apply Now
How Our Factoring Service Works
Our factoring service is fast and easy, with no long term contracts. Our investors (factors) purchase your receivables and provide you with immediate cash. This is not a loan, which must be repaid by you. The factors are repaid as your customers pay their invoices. They assume the risk of bad debt, eliminating any expense from your income statement.
Initially, your account will be set up within 10 days. You submit an application along with details on your accounts receivable. We respond with preliminary approval while the factor’s due-diligence team analyzes your receivables. We design a factoring program that is appropriate for you.
Once an agreement is established and the account is set up, the process works as follows:
1. Your business initially bills the companies and sends copies of the claims to the factoring company as often as desired 2. Cash is deposited into your bank account within 24 hours. 3. The factor informs the company that it is managing the account. 4. The factor waits to get paid by your customer. 5. Once paid, the factor refunds the reserve, less a small financing fee.
Apply Now |
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