& Future Cash Flow Needs!'
Factoring
As a business owner invoicing your clients, you have the ability to utilize this process to get up-front financing against those Accounts Receivables. This is considered an asset and using the Factoring process to grow your business, still keeps your receivable in the Asset column.If you are a government contractor or doing business-to-business transaction, you could qualify for factoring financing. In order to do so, you most likely give your clients15- 30 days to pay on your invoices. In most cases, they pay maybe 45-days out, 60 or even 90-days later. This can make things difficult for any company, and so, like most companies you could qualify for this type of funding.
- Factoring does not create debt on your balance sheet!
- Increase Sales
- Fund Growth & Expansion
- Hire Additional Sales People
- Meet Payroll and Payroll Tax
- Early Payment - Supplier Discounts
- It increases your
purchasing power, enabling you to do more business!
- Turn Accounts Receivable into cash immediately!
- Factoring improves your credit
rating, and gives you cash to meet your obligations!
- It eliminates using
equipment, real estate or inventory for collateral!
- It eliminates the need for
bank loans, SBA Loans or venture capitalists or partners that share in decision-making and profits!
- Working with a Factoring Company is flexible!
- Factoring
is easy and fast!
- Meet
increasing sales demands!
- Factoring helps you to offer
better and more competitive credit terms to customers!
- Concentrate
on growing your own business!
- Use
your customer's good credit as leverage!
- Reduce
your company’s bad debt!
- Receive professional collections and invoice processing assistance!
- Great for startup , challenged or growing businesses who invoice their clients!
Advance – our
client receives up to 80% of the face value of invoice when invoice is
purchased.
Reserve – our
client receives the balance once the customer has paid for the invoice – less
discount fee.
|
Invoice Sold |
$10,000.00 |
|
Advance______80% |
$8,000.00 |
|
Reserve______ 20% |
$2,000.00 |
|
Invoice is paid in 30 days average fee just 2.5% - Fee deducted from Reserve |
- $250.00 |
|
Total Reserve paid to client |
$1750.00 |
|
Total
amount received |
$9750.00 |
Financial Analysis
Review the financial analysis below to determine if Factoring (Accounts Receivable Financing) is right for you.
|
Solutions |
AR |
Self |
ABL |
Bank |
VP |
|
Flexibility |
Yes |
No |
No |
No |
No |
|
No minimum |
Yes |
Yes |
No |
No |
No |
|
No Maximum |
Yes |
No |
Yes |
Yes |
Yes |
|
Seamless |
Yes |
No |
No |
No |
No |
|
Start-Up Entity |
Yes |
Yes |
No |
No |
No |
|
Easy Processing |
Yes |
Yes |
No |
No |
No |
|
Limited Paperwork |
Yes |
Yes |
No |
No |
No |
|
Limited Guarantee |
Yes |
Yes |
No |
No |
No |
Funding Amount: No Minimum – No Maximum
Factoring Fees: Fees are primarily determined by the credit worthiness of the client’s customers.
Up-Front Fees: Varies per financing partner - most factoring financing sources do not charge an upfront fee.
Qualification: Any business doing government contracting and/or business-to-business transactions who invoices. We have few sources who will work with you if you are doing business-to-consumer (call for more info).
Disqualification: Misrepresentation on Application.
Requirements: To start the Factoring process, the documents should include BUT not limited to:
· Client Questionnaire
· Authorization To Release
· Application
· Must produce invoices in order to factor.
· Most recent Accounts Receivable Aging Report
· Articles of IncorporationPersonal Guarantee: Depends on type of industry/clientele.
Type of Factoring: Non-Recourse, Modified Recourse & Recourse (per financing partner)
Company Types: ALL Types
Closing Time Frame: Normally 7-10 business days; depending on clients’ need and response time.
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Tel: 703-372-3248
