DID YOU KNOW THAT YOUR OUTSTANDING RECEIVABLES ARE WORTH CASH TODAY?

Accounts receivable factoring, which is also referred to as Invoice Factoring, is a financial service that allows a business to sell its outstanding receivables to a specialized financial instititution called a Factor. Your company will then receive immediate funding for a small factoring fee. If your business sells products or services to other businesses or governments on credit terms, you have the option to factor your receivables and eliminate the long billing cycles that put a strain on your cash flow. Learn how this financial service can help your business whether you are growing fast or just struggling to survive.

Initial funding is typically available between 5 to 7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hours. Account receivable factoring does not create a financial liability on your company’s balance sheet. Factoring allows quick access to working capital instead of waiting 30, 60, or 90 days to receive payment from your customers. Unlike traditional bank financing invoice factoring relies on the financial strength and credit worthiness of your customers instead of your credit history. You can use invoice factoring services as much as you want or as little as you want. Whether your monthly invoices are $10,000. or $1,000,000. your business can benefit from invoice factoring.

HERE ARE SOME OF THE ADVANTAGES OF FACTORING:

• Obtain funding for your outstanding receivables within 24 hours
• Extend credit and better terms to large customers without asking for C.O.D.
• Factoring is not a loan. No new debt is created
• Pay your suppliers faster. Take advantage of early payment discounts
• Improve your business cash flow & credit rating
• A factor is not a collection agency
• Eliminate long billing cycles & the hassle of collecting money

Factoring Questions Answered

Q. When I use factoring services, where does my customer send the payment and who is the payment written to?

A. The payment is mailed to the Factor, and the check is written to the Factor. The Factor is the collector of the receivable.

Q. How will my customer know to send the invoice payment to the factor?

A. When you open a factoring account, your company will send a letter to your customer identifying the factoring company and ask to accept the requests for payment on your behalf. Afterwards, the factoring company will send letters to your customer asking them to redirect payment for each invoice you choose to factor.

Q. What will be the impact on my customer, and how might it change our existing relationship?

A. The only difference to your customer is where to send the payment and who the payment is made out to. In fact, your customer relationship will most likely improve with factoring services. You no longer have the uncomfortable task of collecting payment from your customers, the factoring company will now assume that roll as a independent third party. Now you can keep your conversations with your customers strictly about business and leave the topic of collecting payments to the factoring company.

Q. How does the factoring company communication with my customers?

A. The factoring company communicates to your customer through letters and telephone calls as your accounts receivable management service. The letters ask your customers to redirect invoice payments and the phone calls are only to verify the existence of an invoice. Should your customer begin to default on payments, the factoring company will raise the issue with you first before speaking to your customers.

SPEND MORE TIME BUILDING YOUR BUSINESS AND LESS TIME COLLECTING MONEY.