Selling Accounts Receivable Invoices Increases Profitability
Factoring yields more Equity and higher Profits.
We can turn your commercial accounts receivable invoices into extra profits and provide enhanced equity for your business!
Are you waiting 30, 60, even 90 days to get paid on your accounts
receivable? Would an advance on your invoices, up to 85%, provide
you with adequate working capital? There are Invoice Buyers
that will purchase your commercial accounts receivable, allowing you to
generate the cash flow that you need to grow and prosper!
Factoring is the sale of your accounts receivable ( invoices)
to a funding source at a discount off the face value in return for
immediate cash. The funding source is known as a factor. This is also
commonly known as account receivable factoring or invoice factoring.
The process typically works like this: You deliver a product or service and issue an invoice to your customer. Without invoice factoring,
you wait 30,60, or 90 days for payment. With accounts receivable
factoring, the factor immediately purchases the invoice and advances an
initial payment of 70-95 percent of the invoiced amount. In most cases,
you'll have funds in your account within 24 hours. When your customer
pays the invoice (payment is made directly to the factor), you'll
receive the remaining balance (5 to 30 percent of the invoice amount)
less thefactor's fee.
Waiting
to collect on these lengthy billing cycles can put a financial strain
on a company that is growing steadily, growing rapidly, or even
struggling to survive. New and growing companies may have trouble
receiving traditional financing due to shortage of time in business,
diminishing profits and other typical financial criteria used by
traditionallending sources. Accounts Receivable Factoring IS NOT BORROWING!
Instead, it allows companies to take advantage of their outstanding
invoices to raise immediate cash without incurring additional debt or
compromising their current financial credit standing.
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Typical factoring clients include manufacturers, wholesalers, distributors, and service businesses who have the following:
- $500,000 to $50 million in annual sales
- Customers that are credit worthy risks
- Invoices that are verifiable.
- Good management & industry knowledge
Most invoice factoring financial institutions not only supplies working capital but also offers an array of other services.
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Credit Analysis - Professional credit analysts assigning credit limits for customers. Credit lines are constantly monitored and updated.
-
Bookkeeping
- Customers are provided with all necessary tools for monitoring their
accounts. Daily transactions are generally available online through
current invoice factoring aging reports, collection reports, and
reserve reports. With this documentation, clients will know where their
invoices are at all times.
-
Funding - Funding of invoices are usually disbursed by the next business day.
-
Collections
- The experienced staff of the financial institution will monitor your
account on a daily basis. Collection programs are usually customized to
each client.
!["The IPC told me which invoices to sell to get the cash I needed."](/account/images/quote.img?version=1"e.text=_225468652049504320746f6c64206d6520776869636820696e766f6963657320746f2073656c6c20746f206765742074686520636173682049206e65656465642e22_&author.text=Cathy+C.+-+Printer&title.text=Nevada&begin.fill.color=99C7E4"e.fill.color=333333&begin.font.size=150"e.font.size=18"e.text.wrappingwidth=102&stage.width.max=102&pid=1207510406255)
!["The IPC proved to me that all of my personal investment in Working Capital could be eliminated in my practice. It took only 4 months."](/account/images/quote.img?version=1"e.text=_22546865204950432070726f76656420746f206d65207468617420616c6c206f66206d7920706572736f6e616c20696e766573746d656e7420696e20576f726b696e67204361706974616c20636f756c6420626520656c696d696e6174656420696e206d792070726163746963652e20497420746f6f6b206f6e6c792034206d6f6e7468732e22_&author.text=Dr.+Roger+M.+-+Physician&title.text=New+Jersey&begin.fill.color=99C7E4"e.fill.color=333333&begin.font.size=150"e.font.size=18"e.text.wrappingwidth=102&stage.width.max=102&pid=1207510406255)
