Invoice factoring and accounts receivables management from Capital Funding Solutions, this business funding stategy provides working capital and cash flow for on-going company operations.



Frequently Asked Questions:
Factoring and A / R (Accounts Receivables) Financing and Selling your Business Note

   
Factoring and A / R Financing  
   
Factoring Invoice Receivables Tampa Florida Fl Capital Funding Solutions Cash Flow Accounts Receivable Financing Funding

Why would a company sell their receivables?

Companies that encounter a recurring cash flow problem often can't afford to have cash tied up in receivables for 30 - 60 - 90 days. They need consistent cash flows to meet the immediate present financial demands of their business and continue growing.
 
  Is Factoring a type of loan?

No. Factoring is defined as the purchase of a company's receivables as opposed to a loan using the receivables as collateral.
 
  Can we qualify if we have a bad credit history or are just starting in business with no credit history?

Yes, the background of the company in need of cash is of little importance. It is the creditworthiness of the company's customer that really matters. As long as the customers are going to pay their invoices, the factoring transaction can be completed.

  Can I factor my A/R if my company already has a loan or line of credit with a bank?

Sometimes. We have funding programs and agreements that can compliment and work with your existing lenders to enable you access to larger amounts of funding.
 
  What is the minimum amount of A/R invoices I can sell?

There are no minimums. You can stop after one month, or continue for many years, whatever your business needs to grow.
 
  How quickly do I get the funding?

Upon receipt of a completed client application packet, it takes approximately 3 - 5 business days to process. After this initial set-up, fundings will usually be done in 24 - 48 hours.
 
  How are the fees for factoring services determined?

Fees vary from company to company. They are determined by a combination of your customer's creditworthiness, average payment cycle, invoice size and factoring volume. Industry fees average from 2.5 to 4 % of the invoice amount for 30 days, although CFS is very unique as we work with a 5 day fee structure, greatly reducing the "actual" fees incurred. The fee for services is not paid until collection of the invoice. You will be given a free quote as to your fee structure after submitting an application.
 
  What will my customers think?
 
  The process of selling a note or income stream has been around for centuries. If you have ever owned a home, you probably were notified at some time to make payments to another mortgage company. It's the same process. In actuality, your customers should recognize the fact that you make good business decisions in obtaining the money owed to you immediately, and making the best use of that money rather than waiting months. Taking advantage of immediate collection is not a negative action, but rather, good business sense. Since the turn-around time to obtain your cash is quick, it clearly enhances cash flow and the bottom line of any corporation that utilizes this profit tool and enhances their ability to serve their customer's effectively.
 
  How does the funding process work?

There are 7 simple steps:
1. Submit a simplified client application and aging report.
2. A proposal or verbal quote of your discount fee structure and advance rate is prepared for your review (quote turnaround time is less than 24 hours)
3. If you wish to proceed, agreements are emailed to be finalized.
4. Due diligence searches are performed (2 - 4 working days). Once these searches are completed, funding can begin immediately.
5. A copy of your invoice(s) for products or services rendered is faxed.
6. Invoice is verified and funds are advanced (usually in hours).
7. When the invoice is paid, the balance of funds are remitted to you less any fees accrued.
   
 
Selling Your Business Note
   
What is my note worth?

The value of a note is established by a number of factors, including the dollar amount being sold, the amount of cash down-payment, type of business sold, hard assets in the business, the buyers previous experience in the business purchased, "seasoning" (how long the payor has been making payments) and creditworthiness of payor.
 
Can I sell only a portion of my note?

Yes. Several different programs are available to pull capital out of the note. Actually, you will receive more cash for selling only a partial portion of your note, as opposed to a full liquidation which has a higher discount rate in the secondary market.

 
How long will it take to get my money?

Generally, after we have received the necessary documents and information, it takes only 10 working days to process and record the documentation and complete the sale.
 
Will selling my note have any effect on the person paying me?

No. All terms and conditions set forth in the original note remain in force. The only change will be to whom and where future payments are sent.
   
 

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Selecting an Invoice Factoring Company: Best Practices, Part I
Selecting an Invoice Factoring Company: Best Practices, Part II
Selecting an Invoice Factoring Company: Best Practices, Part III

 



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