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.
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.
Most customers are pleased that you have a credit line with access to more adequate funds. Besides, they will want to do business with a vendor who has the ability to gain working capital.
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.
Our factor fee ranges from 1½% – 3% 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.