Who qualifies for factoring?
Almost all manufacturers, distributors, or service companies, including those with a negative net worth, and even companies in Chapter 11 Bankruptcy.
Amazon sellers are pre approved for quick access to their Amazon disbursements.
Even struggling companies can qualify?
We look at the quality of a company’s customers rather than its specific financial strength. If a company has customers who pay their bills, it can get working capital from Capital Invoice.
How long does the application process take?
In some cases an applicant can receive initial funding in as little as 48 hours, although the typical turnaround time is one week to 10 days.
Is the use of factoring considered a “negative” by a company’s customers?
Factoring is used by many of the largest corporations in the world to improve cash flow, support growth, and increase profits. For example, Snapple Tea grew to have sales of hundreds of millions of dollars a year with factoring. In fact, nearly $100 billion worth of factoring is done every year in the United States. Indeed, the fact that a company qualifies for this “credit line” makes a strong positive statement.
Does a company’s customers always know when a company is factoring?
Yes, our professional Account Managers work directly and discreetly with your customers to insure payments received at our lockbox are properly applied to your account with us.
Does the company still invoice their customers directly?
Yes, with a notation on the invoice directing payments to our lockbox for credit to your account. You simply email a copy to your Account Manager for funding.
What might disqualify a company for factoring?
If a company has a large bank loan secured by its Accounts Receivables it might not qualify.
What if a business has credit problems?
When we evaluate a prospective client, we’re primarily interested in the credit-worthiness of its customers, the prospect’s management ability and future business potential. We understand that many businesses face cash crunches, and we’ve actually helped businesses that have been in bankruptcy, in the process of restructuring, or have tax liens or levies to satisfy.
What types of businesses can use factoring?
Factoring was used for many years primarily in the furniture and textile industries. However, we’ve adapted and expanded traditional factoring to fit today’s new businesses including high- and low-tech manufacturers, distributors of all kinds, importers, exporters, government vendors, and service companies.
What size company is eligible?
Typically businesses with at least $25,000 in new monthly receivables are prime candidates. However, companies with revenues ranging from $750,000 to $30 million a year have also been financed.
What types of receivables are acceptable?
Just about any valid invoice for services performed or products delivered.
Does receivables financing make good business sense?
Yes, thousands of large, well-known firms like IBM, Georgia Pacific, and Shell Oil have used this financial tool. Now more businesses have the opportunity to take advantage of this proven, debt-free, and flexible way to multiply working capital.
Can a company with a history of credit problems such as bankruptcy, IRS liens, or Judgments qualify?
Can a startup company with no credit history qualify?
Yes, if it has creditworthy customers.