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When you complete your work for a customer, that is, deliver your goods or perform your service, what do you have?
An open invoice that you need cash for now!
Our Factors will purchase your invoices to your creditworthy customers, and give you immediate CA$H!
Do I need accounts receivable financing?
Answer: YES...if you are a new business. YES...if you are a business that can't get traditional financing, such as a small or medium size business or a minority or woman owned business. YES...if you need additional operating capital. YES...if you want to solve your cash flow problems.
Other typical scenarios for business owners:
• Your customers are slow in paying your invoices.
• Your sales activity is good, but income is locked up in receivables.
• You have more cash in receivables than in the bank.
• You could use cash for growth, for payroll, for taxes, for additional staff, for equipment/supply purchases, to take advantage of trade discounts, etc.
• Your bank said no to your loan request.
Benefits of Accounts Receivable Financing:
• Factoring accelerates cash flow needed for growth or operating capital.
• Factoring is accessible.
• Factoring is flexible... factor some or all of your invoices, when you need the cash.
• Factoring is not a loan.
• Factoring approval decisions are based on the credit worthiness of your customers... not the business owner's credit.
• Factoring gets your invoices paid within 24-48 hours.
• Factoring provides you ready access to an expandable, renewable and steady cashflow and working capital.
What is factoring?
• Factoring is the purchase of accounts receivable for immediate cash. Once you have delivered a product or performed a service for a creditworthy corporation or institution, contact us prior to sending your invoice to your customer. Once confirmation is made with your customer that the work has been completed or the goods delivered and accepted, you will be advanced up to 70% -90% of the face value of the invoice amount in cash. When your customer pays one of our factoring partners, you will receive the balance less the discount.
Factoring is generally more appropriate than bank financing, because:
• Factoring provides continuing cash flow without the requirement of periodic payments or interim payoffs. New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.
• Factoring gives a business owner increased access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.
• Factoring provides for a dependable, continuing source of working capital without the necessity of making separate loan applications.
• Factoring avoids the necessity of obtaining funds from banks or using your existing credit line with your bank.
• Factoring saves the business owner precious time waiting for a bank loan committee to grant or deny his or her loan. Loan committee decisions are influenced by many considerations, and the outcome is often unpredictable.
• With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best run the business. Accounts Receivable Financing is not a loan. It is "off-balance-sheet" financing. Factoring does not burden your financials with additional debt load.
How do I get started?
Answer: Give us a call and we will discuss everything that you will need to do to get you started.
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Factoring/Accounts Receivable Financing
