Why? It’s a viable way to grow and not incur debt on your balance sheet…
Many businesses and fast-growing companies have a huge demand for cash-flow and working capital. Chances are their accounts receivable are 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.
Factoring or Accounts Receivable Funding is designed for businesses that want to improve their cash flow by not waiting 30, 60 or 90 days for a customer to pay. It is used in almost every industry today involving business-to-business or business-to-government transactions.
There are three three major questions to ask when deciding if factoring is right for your business:
- Do you operate a profitable business that is occasionally short of cash?
- Is too much of your money tied up in 30, 60, or 90 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?
If yes is the answer, factoring may be a good choice for your business. Factoring allows companies access to working capital even if your bank has told you no. Benefits include:
- Flexible and simplified funding programs
- Easy applications
- Quick approvals
- Fast and easy process, allowing initial funding in 2-to-4 business days
- Ongoing funding that can be administered in 24-hours based on your customer’s credit-worthiness, not yours
- No long-term contracts required
- Flexibility: you choose which invoices you offer for sale
- You can use the money however you want to
- Unlimited source of operating cash that grows as sales grow
Here’s How it Works:
Once your account has been opened, the following steps typically take place:
- An invoice is created for goods or services delivered.
- A copy of the invoice is submitted via fax or email.
- The Factor makes sure your customer is credit-worthy, willing and able to pay the invoice when due.
- A cash advance (up to 85%) is wired to you. (Note: your cash advance percentage will be pre-determined based on your actual funding needs)
- The Factor does the administrative work of collecting payment, accounting, etc.
- Payment is remitted to Factor, via P.O. box, when due.
- Balance is remitted to you, less the discount fee. (Note: Your discount fee will be pre-determined with quote.)
If this type of funding seems appealing, call us anytime for a quote: 877-545-1311.