Receivables Factoring
Why it is Beneficial
With factoring, it creates a steady cash flow, thereby allowing your firm to enjoy a fine credit reputation, to expand, and the strength to develop conventional bank financing.
How to Get Started
We buy your invoices outstanding and pay you 80-85% face value of each invoice. The balance is held in a "reserve" account to offset any invoice that is not fully paid for some reason.
The Customer's Reaction
Most customers are pleased that you have a credit line with access to more adequate funds. Besindes, they will want to do business with a vendor who has the ability to gain working capital.
Documents Required
Although we rely on the creditworthiness of your customers, we will need from you the proof that all taxes are paid, a recent accounts receivable and accounts payable aging, a copy of a current financial statement or tax return, and a list of customers whose invoices are to be factored.
The Fee Structure
Our factor fee ranges from 2½% - 5% for the first 30 days and ½% to 1% every 10 days thereafter, up to 90 days. However, exact rates are quoted at time of application processed. Decisions are usually made within 3 to 5 days.
