If you were watching the opening weekend of college football, there’s a good chance you saw a television commercial for a national factoring firm.
While we think it’s great that our industry is getting more exposure, we weren’t particularly thrilled with the commercial. With bright colored words flashing across the screen and a booming voice-over, the commercial had the look and feel of a used car lot commercial.
It may be that other factoring companies out there view what they do as similar to payday loans, and they may well charge percentages that make them more akin to that kind of business model, but that’s not what Capital Invoice does.
As a factoring firm, we do not impose upon our clients a cycle of debt from which they cannot escape.
Instead, at Capital Invoice what we do is partner with our clients to provide solutions that allow them to grow their business, move on to the next job, and pay their employees and vendors in a timely fashion.
If you’re unfamiliar with factoring, here’s how it works:
Our typical client comes to us with invoices for commercial or government customers. Our client needs to pay employees or vendors or needs to buy equipment or supplies to move on to the next job, but he’s stuck waiting for his customers to pay their invoices.
Anyone in business understands that invoices can sit 30 or 60 or sometimes even 90 days before they are paid. Many times, our clients do not have the cash flow to sit on a pile of invoices for two months, and if they’re going to grow and expand then they need to get paid for their invoices immediately.
Capital Invoice can buy those invoices from our clients. We provide up to 90 percent of the invoices right now, allowing our clients to pay their vendors, pay their employees and buy what they need to move on to the next job.
Capital Invoice then receives the payment on the invoices. We wait the 60 or 90 days while our clients are financially able to move ahead with growing their company and adding to their business.
When the invoices are fully paid, we take a small percentage as our fee and pay what’s left of the remaining 10 percent to our clients.
It’s not a loan, and it’s certainly not a payday loan. It’s not the sort of business transaction that needs brightly colored words flashing across the screen and some guy shouting at viewers.
Obviously, we can’t control how other factoring companies advertise their business, and we are glad to see that companies are raising the awareness of what factoring is and how it works.
So if you’d like to learn more about a toned-down approach to factoring and how it can solve some of the problems you face as you attempt to grow your business, please give us a call.
At Capital Invoice, our objective is to build long term partnerships with our clients that will help them grow and flourish in their business, not yell at them from a television screen.