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· What is factoring?
Factoring is the purchase of accounts receivables for cash. Factoring gives
businesses the power to ensure growth without diluting equity or incurring
debt.
· How does factoring benefit my
company?
Factoring can be extremely beneficial to your company when managed
properly. Some of the benefits of factoring may include the ability to
expand sales, or the purchase inventory or raw materials in bulk. Your
company avoids such expenses as mailing costs, costs associated with
collection and dunning, losses on bad debts, and much more. Your Factor, in
essence, becomes your credit department!
· What types of businesses should
use factoring?
A wide variety of industries can benefit from factoring. The trucking
industry, high tech industries, temp agencies, printers, and manufacturers
of all types, just to name a few, are perfect candidates. Of course, any
sales and distribution, as well as many service industries could benefit as
well. For the most part, we are talking about any business that sells a
product or service to other companies on net 30 to 60 day terms.
· Do I have to factor all of my
invoices?
No, you have the option to factor whichever invoices you like. You're in
control!
· What size clients do you serve?
We'll serve practically any size business. Typically, we service clients
with a factoring volume of anywhere from $2000 per month to $2 million!
· Are there any restrictions?
There are no restrictions based on the location of your business or the
location of your customers.
· Will you purchase every invoice I
send?
We will attempt to purchase as many as possible.
· What do recourse and non-recourse
mean?
When an invoice is factored on a non-recourse basis, the factor incurs the
loss if the reason for non-payment is attributed to credit failure or
insolvency. Recourse basis means that if for any reason the purchased
invoice is not paid within a specified time frame, you would buy it back.
· When do I get the money?
Normally, within 24 hours!
· Is a first lien required?
Yes.
· Are additional forms of
collateral required?
Yes. A personal guarantee by the persons resposible for the ownership of
the company is required.
· Can a start-up business use
factoring?
We will work with start-up companies, companies that are growing, companies
that are not surrently profitable, and even companies with special
situations, such as tax arrears, lawsuits, judgements, or bankruptcy.
· How much does it cost?
First of all, there are NO up-front fees! You will receive an advance of
80% to 90% of the value of the invoice within 24 hours. Then, depending on
the volume and the number of days that the invoice remains outstanding,
your actual fee will be between 1.9% and 7%. The fee is comparable to
credit card merchant fees.
· How long does the process take?
It takes approximately four to ten working days to process your application
and to fund a new account with all the necessary information. Thereafter
24-48 hours.
· How do I find out more?
Click here for Application. Call Bob Moore toll-free at
1-866-944-6634 or email us at bobmoore@invoicestocash.com
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