How Accounts Receivable Factoring
Works
You
begin by filling out a simple client profile,
which we will provide you.
This profile
will cover
basics such as your company's
name and address, the nature of
your
business, and information about your customers.
You may need
to supply an accounts
receivable aging report, existing customers'
credit limits, or other related documents.
Remember the factor will
attempt to determine the creditworthiness of your customers
independent of
their credit history with
your business. We want a broader view of
their
overall credit status.
During this initial stage you will
also cover
basic financial arrangements with the factor.
For instance,
what will be the monthly
volume of invoices you want to factor
(i.e. how
liquid do you need to be)?
What will the advance rate and
the discount
rate be? How quickly will
the factor issue the advance to you?
In
most cases, the answers to these
questions will vary depending on the
financial strength of your customer(s)
and the anticipated monthly
sales
volume to be factored. Variations
between industries, length of
time in operation,
and general reputation of how risky a
customer of
yours may be. For instance,
a long list of high-risk clients will cost
you more in factoring fees than a
short list of government agencies
with a slow-pay history.
In the factoring business, volume is
all important. The higher your volume(the dollar amount of invoices you factor),
the more favorable your rates will be.
The factor will use the
client profile you submit to determine if your business is suitable for
factoring. This process is simply the factor analyzing the risks versus the
rewards, using the information you provided.
Once approved, you
can expect to negotiate terms and conditions. The negotiation process takes
several aspects of the deal into consideration. For instance, if you want to
factor $10,000, you can't expect as good a deal as a company that wants to
factor $500,000.
During the negotiation process, you will become
well aware of what it costs to factor your accounts receivable. After you reach
an agreement with the factor, the funding wheels begin to roll. The factor
conducts due diligence by researching your customers' credit and any liens
placed against your company. The factor also confirms the legitimacy of your
invoice before buying your receivables and advancing cash to you
Imagine flexbility that no one else offers
B U S I N E S SE S C H O O S E U S A G A I N A N D A G A I N B E C A U S E W E H A V E
T H E K N O W L E D G E , E X P E R I E N C E A N D S Y S T E M S F O R
O N E - O F - A - K I N D F I N A N C I N G P R O G R A M S T H A T A R E U N I Q U E I N
T H E FA C T O R I N G I N D U S T R Y . G E T S T A R T E D T O D A Y -- M A K E T H E
S M A R T C H O I C E F O R G R E A T E R P R O F I T S !
+ + + + + + + + + + + + + + + + + + + + + + + + Please contact us
today and our seasoned invoice factoring professionals will help you get the cash you need today.
- Call us at 1-800-986-1859, or
- Email us, or
- Complete the Online Invoice Factoring Request Form
Unlike the others, you choose what works best for you; you sign no long-term contracts; you pay no fees
when your account is inactive. You set up your contract to meet your cash
flow needs, not ours. You can choose between using our most advanced
technology or using the old-fashioned systems - we maintain both for you.
Unlike the others, our objective is not to force you to conform to us, but
to get you the cash you need in the quickest and most efficient manner.
We offer cash advance rates of up to 97% -- exceeding industry norms by 20%.
The typical maximum in the factoring industry is 70-80%. We can offer these
great rates because of our unique and flexible combination of bank and
private financing.
Our same day funding policy gets cash out to you within 12-24 hours. You
have the cash when you need it, which will help keep your business moving.
Factoring with us includes complete credit management services. We fully research new clients and, equally important, routinely check the credit ratings of your existing customers. As a part of the process you will also receive accounting, transactional details, aging reports and financial management reports which can be incorporated into your own sales tracking, account history and in-depth analysis.
Our experienced account managers are seasoned professionals, each with an average of 11 years in the industry (well above the industry norm of 2 years). And unlike the others, you have one dedicated person and his or her assistant who handle your account. You donšt have to start over with a new person each time you call. Our personalized service sets us apart from other factoring companies -- we always go the extra mile to make sure your financial needs are met.
Why Factoring Is Necessary
Factoring Benefits
How Factoring Works
Changing Factoring Companies
Is Factoring For You
Online Factoring Request Form
