The Client profile
You begin by filling out a simple client profile, which we will provide you. This profile will cover basics such as your company's name and address, the nature of your business, and information about your customers.
You may need to supply an accounts receivable aging report, existing customers' credot limits, or other related documents. Remember the factoring company will attempt to determine the creditworthiness of your customers independent of their credit history with your business. We want a broader view of their overall credit status.
During this initial stage you will also cover basic financial arrangements with the accounts receivable factoring company. For instance, what will be the monthly volume of invoices you want to factor(i.e. how liquid do you need to be)? What will the advance rate and the discount rate be? How quickly will the factor issue the advance to you?
In most cases, the answers to these questions will vary depending on the financial strength of your customer(s) and the anticipated monthly sales volume to be factored. Variations between industries, length of time in operation, and general reputation of how risky a customer of yours may be. For instance, a long list of high-risk clients will cost you more in factoring fees than a short list of government agencies with a slow-pay history.
In the accounts receivable factoring business, volume is all important. The higher your volume(the dollar amount of invoices you factor), the more favorable your rates will be.
The factoring company will use the client profile you submit to determine if your business is suitable for factoring. This process is simply the factor analyzing the risks versus the rewards, using the information you provided.
Once approved, you can expect to negotiate terms and conditions. The negotiation process takes several aspects of the deal into consideration. For instance, if you want to factor $10,000, you can't expect as good a deal as a company that wants to factor $500,000.
During the negotiation process, you will become well aware of what it costs to factor your accounts receivable. After you reach an agreement with the factor, the funding wheels begin to roll. The factor conducts due diligence by researching your customers' credit and any liens placed against your company. The factoring company also confirms the legitimacy of your invoice before buying your receivables and advancing cash to you
Here is just a sample of our services and features that we can provide you
Services
Invoice Processing - We will mail out your invoices to customers, pay for the postage, post invoices to the computer,deposit checks, enter payments and produce regular reports. All you need do is generate an invoice as you normally would and we take care of the rest
Credit Management and Consulting - Our extensive credit and accounts receivable assistance is available at no charge and is often less costly than maintaining your own in-house credit department. We serve as your credit department, accounts receivable department, and collection department.
Courteous Collection - We understand the relationship you have with your customers, we do not use heavy handed techniques to collect your invoices. We work with your customers so they understand factoring and how it helps you serve them better.
Back Office Support - We can help you reduce the mailing, time and collections on your accounts receivables.
Plus Much More
For Transportation Clients:
Message Center - We can relay messages to you while on the road and not easily reached.
Load Matching Database - We can let you know who has loads in the area you are traveling, so as not to deadhead half of your trip. All you need do is contact the business with the load to haul.
Fuel Card Assistance - We will help you obtain a fuel card from Comdata. We can also help you maintain the fund that the fuel card is drawn from.
Features
Same Day Funding - We will buy your invoice and give you an advance in the first 12 to 24 hours that you supply us with invoices for goods and services that have been shipped and accepted.
Processing - We will buy your invoices from a faxed copy of the invoice. Just send us the original invoices in the envelopes provided so we can mail out the originals for you.
No Long Term Contracts - You can give us thirty days written notice to terminate our services any time
No Start Up Fees - You are charged only for the invoices we buy from your company.
Short Application Process- We have a short application and we try to keep our application process down to five days or less.