Factoring

Why Factor?

• Increased cash flow
• Improved financial position
• Flexibility

Factoring (also known as "Accounts Receivable Factoring") is a form of financing where a business sells its accounts receivable to a financier known as a factor. Once a business sells its accounts receivable or invoices, the business immediately receives cash for a percentage (70-80%) of the invoice. The remainder, less the financier’s fee, is paid to the seller when the full invoice payment is received and cleared by the factor.

The factor does not require its clients to enter long-term, restrictive contracts or meet minimum monthly requirements. This flexibility allows companies to factor when, and how often, the need arises. A company can factor all its invoices one month, and none the next, depending on their cash flow needs. This is especially beneficial to those companies who experience seasonal or unexpected sales changes.

The twist is its flexibility. Our program has eliminated the restrictive terms and high fees common in other factoring programs. Unlike other factors, we charge a per-diem fee instead of costlier block-time fees, and we do not charge for check clearance days. Our fee is directly proportional to the amount of time elapsed between initial funding and payment of the invoice. This means that the client does not pay for any extraneous days once the invoice has been paid.

We do not require volume commitments or charge non-usage fees. This means clients can choose to factor as many receivables as they need.

Also, we do not charge application, approval, or due-diligence fees. Many competitors charge up to $500 for the cost of running UCC, Tax Lien, and other credit searches. We do not. Our only fee is the per-diem fee.