Who Could Use Factoring?
Are you dealing with extended payment periods from your clients? 30 days? 120 days? Is tracking down payment, and staying on top of your debtors taking up a disproportionate amount of your time and patience?
These two dilemmas plague growing businesses in industries where these kinds of things are all too common.
Long pay periods leave your business starved for cash, and reinvestment towards growing your business in the hands of your longest paying customers.
Staying on top of clients for payments, and the paperwork associated with Invoicing leaves you starved for patience, and time.
Regain control of your finances with Invoice Factoring.
How Invoice Factoring Works
To better understand Factoring, its best to create a distinction between traditional working capital in the form of Loans, and what is called Accounts Receivable finance. A traditional loan is a lump sum of capital that has a time frame attached to it, and with that time frame, interest accumulates. Additionally, Loans work based on creditworthiness, length of account, and individual underwriting. This bars new and growing businesses from the funding they need to grow their new businesses. It also puts the creditworthiness of the owner before the needs of the owner.
In Accounts Receivable financing, it is not a loan, rather the Factor (we) purchases your invoices that are unpaid and have 7-120 day payment schedules associated with them at a discount. Given the industry, the risk associated, and the volume of invoices being factored, this Rate is malleable. However, in most cases, it is well below 10% of the total value of the invoices. There is no interest rate. Instead, the “advance” of funds has the percent deducted from it upfront.
As a Factor, we purchase your Accounts Receivables and incur the time table of payment stipulated by your client so you can have the funding either the same or the next day. The advantage of this form of financing over loans is that there is no interest rate. You are not beholden to a lender. Factored funds are renewable, and do not depend on the length of time your business has been operating, nor your credit. Instead, what matters most is the credibility of your debtors. An advantage of relinquishing ownership of your accounts receivables is that the burden of client relations and payment follow-ups is offshored to the Factor (us), giving you the time, freedom, and peace of mind that is so necessary to running a successful enterprise. Factoring is the perfect fit for growing businesses, fledgling enterprises, and owner-operators who want the time and financial independence to pursue business, not manage the books. Any industry where extended payment periods stifle growth and limit entrepreneurial growth are good candidates for invoice factoring.
- Paperless Rate Confirmation, Bill of Lading, Proof of Payment Upload
- Proprietary Software – Customer Login
- Industry Competitive Rates
- Rate by Volume, Customer-First Rate Scaling
- Up to 98% Advances on Invoice Value
- Fuel Advance up to 50% of Invoice Value
- Back-Office Payment Processing & Customer Relations
- Same-Day Funding*
- Commercial Truck & Trailer Financing
- Access to our Insurance Tracking and Insurance Brokerage Resources