Why should I factor my invoices? You should factor your invoices to increase sales, meet payroll demands and supplement the dips and valleys in your cash flow. It is a great way to accelerate your existing cash flow without accruing debt or giving up equity in your company.
What is the process? Factoring is the sale of your existing accounts receivable invoices to a “factor” who purchases the invoice from you, verifies the authenticity of it and then provides you with immediate cash. You would submit your invoice to both your customer and the factor. Once the factor verifies the invoice either by proof of delivery, time cards, work complete orders etc. we then provide you with money for it. It is a great alternative to waiting for your customer to pay which sometimes takes 30, 45, 60+ days. Then once your customer is ready to pay for that invoice they send their payment to the factor to repay the amount owed.
Who qualifies? Any commercial company that offers business to business services and has existing accounts receivables would qualify for this program.
What industries do you serve? We serve various types of industries with the exception of construction and retail.
How much will it cost me? We are flexible on our rates and want to price our factoring product fairly. Our ultimate goal is to help our clients grow, not to price them out of business. Having said that, our rates vary depending upon our clients’ customers. If you have strong, creditworthy, well known customers then those arrangements are priced at a lower rate. We also take into consideration the experience of the management team, billing terms and payment trends.
How long will it take for me to approved and funded? Assuming we receive the required documentation in timely manner. it could take one business week to initially get approved and funded.
What do I need to get started? You would need to complete an application and send us your account receivable aging.