Our customers tell us that our combination
of
low rates and exceptional service makes
us the best choice for factoring
services.
Factoring History
Welcome to factoring. Whether you own a business, look forward
to building one or are looking for new financial tools for your current
employer, Factoring can help you reach your financial goals.
Factoring
has the ironic distinction of being the financial backbone of many of
America's most successful businesess. Why ironic? Because factoring is not
taught in business colleges, seldom mentioned in business plans and is
relatively unknown to the majority of American business people,yet it is a
financial process that frees up billions of dollars every year, enabling
thousands of businesses to grow and prosper.
Factoring is the process
of purchasing commercial accounts receivable(invoices) from a business at a
discount. Business practices today dictate that in order to get business you, as
a provider of goods and services, must extend terms to your customers.
These
terms can squeeze the life(and cash is the lifeblood of any business) out of a
new or struggling company.
Factoring has a long and rich
tradition, dating back 4,000 years to the days of Hammurabi. Hammurabi was
the king of Mesopotamia, which gets credit as the "cradle of civilization." In
addition to many other things, the Mesopotamians first developed writing, put
structure into business code and government regulation, and came up with the
concept of factoring.
After a while, Hammurabi and the Mesopotamians went
the way of extinct civilizations, but factoring endured. Almost every
civilization that valued commerce has practiced some form of factoring,
including the Romans who were the first to sell actual promissory note at a
discount.
The first widespread, documented use of factoring
occurred in the American colonies before the revolution. During this time,
cotton, furs and timber were shipped from the colonies. Merchant bankers in
London and other parts of Europe advanced funds to the colonists for these raw
materials, before they reached the continent. This enabled the colonists to
continue to harvest their new land, free from the burden of waiting to be paid
by their European customers.
Recognize that these were not banking
relationships as they exist today. If the colonists had been forced to use
modern banking services in eighteenth century England, the process would have
been much slower. The banks would have waited to collect from the European
buyers of the raw materials before paying the seller of these goods, the
colonists. (And at that point, who needed the bank?) This was not practical for
anyone involved. So, just as today, the "factors" of colonial times made
advances against the accounts receivable of clients, enabling the clients to
continue with their operations, long before they had been paid for what they
were sold.
With the advent of the Industrial Revolution, factoring became
more focused on the issue of credit, although the basic premise remained the
same. By assisting clients in determining the creditworthiness of their
customers and setting credit limits, factors could actually guarantee payment
for approved customers.
This is known as factoring without
recourse(or non-recourse factoring)and is quite common in business
today.
Prior to the 1930's, factoring in this country occurred primarily
in the textile and garment industries, as the industries were direct descendants
of the colonial economy that used factoring so specifically. after the war
years, factors saw the potential to bring factoring to other forms of
invoice-based business and the expansion began.
Today, factors exist
in all shapes and sizes: as divisions of large financial institutions or,
inlarger numbers, as individually owned and operated entreprenurial
endeavors.
Many of these private factors sprung up in record numbers as
interest rates rose to new heights in the 60's and 70's. This trend intensified
in the 80's, primarily due to the increasing impact of interest rates and
changes in the banking industry. With banks becoming too expensive and too
inflexible due to heavy regulation(remember the Savings and Loan crisis?), the
small businessperson was forced to find other sources of financing for expansion
and growth. As more and more banks stop befriending the small bussinesperson,
factoring is becoming an increasingy popular option.
This year alone
thousands of businesses will sell billions of dollars in accounts
receivable, and they are doing it for profit, growth, and in some cases , their
very survival.
We are a nationwide company
offering
factoring programs the others can't
because of our unique
funding capabilities.
The others are restricted by their banks on
what
kind of factoring programs they can offer.
We are not
restricted!
We have been providing factoring
services nationwide for decades and have clients
in hundreds of
industries
When you become
our client you will
be served by our staff that has an average of 11 years factoring industry experience
per account executive.
(Well above the factoring industry
norm!)
You will have one dedicated person and his or
her assistant
who will handle your account.
Unlike the others, you don't have to
start over each time you call with a new person
Unlike other
factoring companies, our program includes the following features at no
additional charge:
• 12-24 hour funding on approved invoices
•
Highest advance rates in the industry
• Credit analysis on new and existing
customers
• Continuous collection management and follow up on factored
invoices
• Invoice and statement mailing (postage included)
• Account
status inquiries anytime;
24/7 online account access.
• We allow you to electronically
submit Invoices
• Free credit checking on new customers at no additional
cost
Our
flexibility allows you to maintain control:
• You select accounts
you prefer to factor on an invoice by invoice basis.
• You control total
factoring costs by only factoring on an "as needed" basis.
Up to 97% Advance
Rates:
Advance rates are based on overall risk
associated with a particular industry as well as experience and track record. We
hold reserve accounts to accommodate industries which typically experience
dilution and that we would otherwise not be able to service. Advance rates range
from 80% to 97% of the gross invoice amount.
Fee
Structures:
Fees are determined based on your industry, the
credit worthiness of your customers, how quickly your invoices turn, and monthly
factoring volume.
GET YOUR CASH
TODAY
Call
our factoring specialists at
1-866-593-2205 or
Email Us or
Complete our
ONLINE REQUEST
FORM
