An Affordable Factoring Company
Offering 97% Advance Rates
How Factoring Works
The First Step:
The Client profile
You begin by filling out a simple client profile, which we will provide you. Please click here for profile. 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' credot 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
Please complete our form so that we can help you determine your options.
Click here for the
Factoring Information Form
or
Call or email us now for your FREE no obligation analysis of your cash flow needs.
Toll
Free: 888-266-0197
and ask for Natalie or Andrea
Email
Us
Nobody,
but
nobody
has our flexibility.
We tailor our
factoring
programs
to meet your needs
To talk with a member of our sales team,
please contact one of our regional offices
at:
Toll
Free: 888-266-0197
and ask for Natalie or Andrea
Email
Us