Simply stated, Accounts Receivable Financing (also used
synonymously with Accounts Receivable Funding and Invoice Factoring) is the
process in which we exchange your company's commercial accounts receivable for
working capital - FAST! When an invoice is generated by your company, we
will purchase it and advance as much as 95% of the invoice amount. After
your customer pays the invoice, you will receive the remaining balance (reserve)
minus a nominal service charge.
Factoring is a very powerful financing vehicle
for business growth, our clients benefit from the infusion of cash flow - funds are
typically wired within 72 hours of approval. Factoring is not a form of
debt or a form of equity - this fact makes factoring more attainable
than
traditional bank and equity financing. We are delivering the advance based on the creditworthiness of your customers
- not your business - which makes this tool accessible to any
credit level applicant!
How it works:
You specify which accounts you'd like to factor, and we establish a credit limit based on the customers you submit.
You complete your business transaction as usual, and send your invoices to us.
We wire the
funds to your business account, and act as your receivables agent,
invoicing and collecting from your customers directly.
What is the difference between Accounts
Receivable Financing and Merchant Cash Advance?
Both are
a form of factoring. Accounts Receivable Financing factors business to
business (B2B) invoices on goods sold or services already performed, while
Merchant Cash Advance factors your future credit card sales as they are made.
Click to complete the Accounts Receivable Financing application. This interactive application can be
submitted online through our secure 128 bit SSL, or can be printed and faxed
in to our office for your comfort. Please also send a copy of your
accounts receivable aging report.
We follow up with you and quote the terms of the
transaction.
Upon acceptance of the terms, we prepare a purchase and sale agreement (usually
within 48 hours), search for liens, and analyze the credit of your customers
and the principal's personal credit.
You execute the purchase & sale agreement and send
to us with first assignment and notification letter(s).
The first assignment generally takes between 24 to 72
hours to fund. Future assignments are normally funded within 24 hours of
assigning invoices.
We purchase the accounts receivable and advance you up
to 95% of the face value of the invoices.
When we collect the payment
of invoices, the balance of the invoice (reserve), less the factoring fee, is remitted back to
you the following week.
Merchant Cash Advance |
How it works:
