Business Funding Solutions

Increase Your Profits!

Reduce Your Days Sales Outstanding (DSO) to within 2 to 4 days!

Reduce Your Administrative Costs!

Increase Your Working Capital!

Grow Your Business without having to go into Debt!

Increase Your Cash Flow with Absolutely "NO" Debt!

With Your Own "In-House" Financing - Why borrow?

How much money will I get through factoring my accounts receivable?

Funding sources typically will advance your business 70% to 85% of the amount you wish to factor, with the remaining balance (less the discount fee) paid upon receipt of payment of the receivable. For example: if you have a $100,000 invoice you submit for factoring. You could receive up to $85,000 in advance of working capital, with the remaining balance to paid to you, less the discount fee, when the invoice is paid to the funding source.

How long will it take before I receive funding?

Once your account is established funding can take place immediately. Medical Receivables are usually funded within 4-days. Commercial Receivables are usually funded within 48 hours, and Construction Receivables are usually funded between 5 to 10 days.

How much are the discount fees to fund my receivables?

They vary depending on the type of receivable, the amount, the volume and frequency, the assign ability, collect ability, solvency, and credit worthiness of your customer. In general, discount fees are no higher than those charged by a credit card company to process your merchant card transactions, and in some cases are much lower with higher amounts and volumes being factored.

Can I factor my consumer receivables?

At this time, only Patient Receivables (excluding co-pays), in the Medical Field can be funded.

Will you collect my old accounts for me?

No. Think of it this way: When you go to the bank for a loan, the bank will not collect your receivables for you. All they care about is that you pay the loan back. They don’t care where you get the money, so long as you pay the loan back. The Funding Source that purchases your receivables, (your private banker), is just that, a funding source. They are not a collection agency. However, the funding source will work with you and notify you regarding late payments or non-performing accounts. Funding sources are very concerned and cognizant not to interfere with your relationship with your customers. In this manner, you continue to maintain control over your billing and collections process, thus, maintaining a strong and healthy relationship with your customer. Funding sources are not a substitute for a good collection agency.

What if some of the accounts I factor get old?

Oftentimes, your customers will pay more promptly due to the fact that you are taking advantage of Accounts Receivable Funding. In fact, you’ll be surprised at how many of your customers become interested in factoring their receivables when they find out about your new “Cash Flow Management” process, and that you don’t have to wait for your money any longer, and neither do they! For those accounts that do fall behind, the funding source will contact you regarding late payments or non-performing accounts. This allows you to contact your customer and discuss the situation and establish a plan of action that is agreeable to your customer, the funding source and you. In this manner, you continue to maintain control over your billing and collections process, thus, maintaining a strong and healthy relationship with your customer.

Are there any other benefits to factoring?

Yes. Besides the increase in Cash Flow with “NO” debt, the funding sources supply you with regular reports, and in most cases, you can go on-line and view your account to see which invoices or medical claims have been paid and which ones are still outstanding. This allows your collections department to stay informed and up to date, with the ability to react “quickly” to slow payments or non-performing accounts. Accounts Receivable Funding will reduce your Collection Period to within 2 to 4 days (Construction Receivables average 5 to 10 days). Accounts Receivable Funding will increase your profits in many ways such as, taking advantage of vendor discounts on a consistent basis, increasing inventory to meet increased demand, auditing CPT Codes and finding under-paid claims in the Medical Field, supplementing and enhancing your billing & collections department, reducing administrative costs, supplying a steady, consistent level of working capital, and many more benefits.

Will factoring my invoices hurt my customer relationship?

No. Funding sources are very concerned and cognizant not to interfere with your relationship with your customers. They understand the sacrifices and great lengths you’ve gone to in establishing your relationship with your customer. In addition, our goal as well as the funding source is to build relationships for repeat business. Funding sources want repeat business. They’re not going to do anything to jeopardize your relationship with your customer. Also, factoring your invoices acts as a Quality Control Measure. If one of your customers has experienced a problem with doing business with you, they are quite likely to mention it to the funding source, at which time; the funding source will relay those comments to you. In this way, you can respond to keep your customer happy. You’ll be surprised at how many of your customers become interested in factoring their receivables when they find out about your new “Cash Flow Management” process, and that you don’t have to wait for your money any longer, and neither do they! Remember, 80% of the Fortune 500 companies now incorporate Accounts Receivable Funding into their Financial Success Formula.

What if there is a bankruptcy, bad credit, poor financials or other derogatory information in my company’s or my history?

Generally, there is no problem. Credit worthiness mainly focuses on your customer, the one who generated the receivable. Funding sources provide capital based on the credit worthiness, solvency and longevity of your customer rather than on your business.

Must my business meet net worth, profitability, debt-coverage, years in business or other financial ratio requirements?

No. As discussed in the answer above, the funding source looks through your business at the credit-worthiness of your customers.

If I factor, can my business still borrow money from other sources?

Yes! That is a “huge” advantage of factoring your receivables. The funding source only takes a security position in your accounts receivable. Your plant, equipment, inventory, intellectual property, other property, etc., are unencumbered and available as collateral for other lenders. Remember, a bank almost always takes a security interest in your assets; which means that you cannot borrow from any other source since you have no collateral to offer another lender. Factoring incurs "NO" debt!

What if my business has already borrowed from a bank, can I still sell my Accounts Receivable?

Yes, and No. If your bank has a secured position on your accounts receivable, sometimes they will subordinate their interest to the funding source. If they will not subordinate their interest to the funding source, the funding source will work with them to try to work out other arrangements. If the bank won’t subordinate their interest to the funding source or is unwilling to work out other arrangements, then factoring your receivables is not available until the debt is repaid to the bank and they release their secured interest in your receivables.