Never let a lack of working capital slow your business down again . . .
- Do you operate a profitable business that is occasionally short of cash?
- Is too much of your money tied up in 30, 45, 60-day terms to your customers?
- Would your business benefit from a "credit line" based on your receivables (and no other collateral) which you could draw upon when needed?
Now, companies can have access to the working capital they need for growth or survival. Even if your bank has told you no.
- Flexible funding programs
- Simple applications
- Quick approvals
Accounts Receivable funding (Factoring) is designed for businesses that want to improve their cash flow by not waiting 30,60, 90 days for a customer to pay. Factoring is used in almost every industry today that sells business-to-business or business-to-government.
What exactly is Factoring?
Factoring is not a loan and differs from borrowing in that your A/R (invoices) are sold at a discount rather than merely offered as collateral. It's the same concept as offering a discount for early payment of your invoice (1% 10, Net 30 days), only now you get the money in 24-48 hours and it doesn't depend on if your client wants to pay early.
New businesses and fast growing companies have a huge demand for cash. And chances are their A/R is growing faster that their cash flow. Until growth levels off, they can never catch up!
What are the advantages?
- Fast & Easy - Initial funding in 5 - 10 business days
- Ongoing funding can be secured in 24-48 hours
- Based on your customer's creditworthiness - not yours
- No long-term contracts are required
- Flexible - you choose which invoices you offer for sale
- You can use the money however you want
- Unlimited source of operating cash - grows as sales grow
How does it work?
Once your account has been opened, the following steps are the typical scenario:
An invoice is created for goods or services delivered.
A copy of the invoice is submitted.
The factor makes sure your customer is creditworthy, willing and able to pay the invoice when due.
Cash advance (usually 70 - 85%) is wired to you. (Note-your cash advance percentage will be pre-determined with quote)
Factor does administrative work of collecting payment.
Payment is remitted to factor when due.
Balance is remitted to you, less the discount fee. (Note-your discount fee will be pre-determined with quote)
What does it cost?
Discount rates and advance amounts are established by a combination of the following: monthly volume, your customer's credit worthiness, invoice sizes, and average payment cycle. The submission of a simple 2-page application along with your A/R ageing report will allow us to quote you a discount rate & the percentage of your invoices that will be advanced. Other normal charges may be credit reports on clients and bank wire transfers.
For more information please contact Love Finance and discuss the invoice factoring options available to you.