We are the BEST receivable financing
company in the industry.

There are some receivable financing companies out there which like to claim to be the best. However, we don’t claim anything. We prove it to you! But, don’t get sick of hearing it -- because we’re confident, and we’ll say that we’re the best whenever we get the chance.

Construction Invoice Factoring

What is Receivable financing?

Receivable financing is quite simple, actually. It is a time-honored and proven method for businesses to get cash when they need it. It has been practiced in America since colonial times and is one of great financial services that have kept this country’s businesses strong for so many years.

Here’s how receivable financing works:
You’re a business that provides goods and services to customers who are creditworthy. Once you provide that customer with an invoice you have to wait to be paid. The problem with this is that customers sometimes take weeks or even months to pay invoices. This is especially true if you’re a B2B (Business to Business) company.

With a factoring service like us you don’t need to wait for this cash. We will purchase your outstanding invoices at an excellent rate. You get the cash immediately and we do the work on collecting from your customers. It’s a win-win for you because you get the cash that your business needs right now and you no longer have to waste time in collecting on invoices or wondering when your cash is going to come in.

reasons to use a receivable financing service

  • Fast growing businesses need cash for purchases and to cover operating costs.
  • No debt created! You get cash without taking on a small business loan.
  • Expansion of business into different markets.
  • Start-ups with no financial records or credit can get the cash they need from factoring.
  • Improved credit rating of your business by putting cash in your bank accounts.
  • Timely tax payments or payment of State and Federal tax liens.
  • The need for cash in seasonal down times.
  • Short-term cash to act as a bridge loan or to meet payroll needs.




WE PROVIDE HUNDREDS OF MILLIONS IN CASH EACH YEAR

We relieve your headaches and stress of collecting on accounts receivables.

Most Convenient

You have 24/7 account access 365 days a year.

Construction Invoice Factoring

Always Reachable

When you call, you get to speak to a real live person.

Construction Invoice Factoring

Receivable financing is great for any business that offers services or delivered goods.



Fast money for businesses that need it

Don’t wait long periods for a loan. Many of our factoring deals can take place in as little as 24 to 48 hours. If you need capital right now or are looking to expand then factoring is the way to go. We work on your time instead of you working on a bank’s schedule.


MAXIMIZE YOUR TIME BY
MINIMIZING THE COLLECTION PROCESS

If you need cash and you’re sitting on a lot of unpaid invoices then factoring with us is the way to go. We’ll give you the cash that your business needs and collect from your customers.


NO DEBT - JUST CASH

Debt is risky while at the same time being beneficial to growing a business. Start-ups can relieve themselves of the risk of debt and still create capital with factoring.


CAN’T GET A LOAN

If you’re a start-up or your business has a poor history or credit then you can still get the cash that you need. Today’s banking atmosphere makes it a challenge for even the most-qualified businesses to get a loan. Factoring takes care of all of that.


HELP SMALLER BUSINESSES WITHOUT THE STAFF

Without a collections department or a small staff, collections often come down to you doing all of the leg work. Our Factoring Service will alleviate that burden and provide the service that you’re not equipped to handle.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The majority of factoring companies purchase invoices and advance cash within 24 hours, although the terms and nature of factoring can differ between industries and different financial service providers.

 

 

Construction Invoice Factoring Articles

Factoring: An Overview

 

What Is Factoring?

 

‘Factoring’ is when a third party commercial finance company purchases the Invoices or Accounts Receivable from a business. The finance company concerned is called a ‘Factor’ and the transaction is known as ‘Factoring’. Factoring is also known as ‘Accounts Receivable Financing’ because factoring occurs when a business needs to access cash quickly, quicker than if it had to wait the 30 to 60 days (or longer) to receive payment from a customer.

 

The majority of factoring companies purchase invoices and advance cash within 24 hours, although the terms and nature of factoring can differ between industries and different financial service providers. Depending on the industry, the customers’ credit histories, and various other criteria, the advance rate can range from between 80% and 95%. The business also receives back office support from the factor. Once the factor has collected from the business’s customers, the business will be paid the reserve balance of the invoices, less a nominated fee for assuming the collection risk.

 

The main benefit of factoring is that a business is not required to wait one or two months (sometimes more) for payment by a customer – the business will receive cash in hand to operate and grow their business. It’s important to note that factoring is not a loan: there’s no debt with factoring. Funding is unrestricted, which means that a business has more flexibility than borrowing from a bank.

 

The Five Simple Steps of Factoring

 

1. As a business, you provide a service to your customer;
2. The invoice for this service is sent to a factoring company;
3. On this invoice, you’ll receive a cash advance from the factoring company;
4. It’s now up to the factoring company to collect full payment from your customer;
5. Once payment has been received, you’ll receive the balance of your invoice account from the factoring company – minus their fee.
The Advantages of Factoring

 

There are many reasons why factoring has become a popular and valuable financial tool for businesses today. The key benefit of factoring is that a business receives a quick boost to its cash flow: in fact, many factoring companies offer cash on their Accounts Receivable within 24 hours! The factoring company takes responsibility for collecting customer payments, and may also evaluate the payment and credit histories of a business’s customers.

 

Other Benefits Include:

 

• When a business needs access to cash, factoring can be customized and managed in order to provide the necessary capital;
• The business balance sheet will not show this financing as a debt;
• Factoring is not based on the company’s credit or business history: it’s based on the quality of its customers’ credit;
• Factoring is not determined by the company’s net worth: it provides a Line of Credit based on sales;
• There’s no limit to the amount of financing through factoring, unlike a conventional loan;
• Factoring is an ideal solution for start up businesses that often require immediate cash flow.

 

Is the Concept of Factoring New?

 

No, it’s not! In fact, the origin of factoring comes from overseas trade among nations and dates back several centuries to the 1400s when it became part of doing business in England. In the year 1620 it arrived in America with the Pilgrims. Like other financial tools, factoring has improved and evolved over the years. It became an effective way of creating cash flow in the United States at a timewhen companies faced strict limitations when trying to secure loans in the country’s damaged banking system.

 

Who Uses Factoring?

 

Factoring is available for companies of all sizes, ranging from a one person business to Fortune 500 companies. Every business can use factoring as an effective way of increasing their cash flow. In addition, factoring spans all types of industries, from transportation, trucking, textiles, manufacturing and distribution, staffing agencies, and oil and gas.

 

The cash generated from factoring is used by companies to purchase new equipment, pay for inventory, expand operations, add employees, and basically cover any expenses related to the running of their business. The beauty of factoring is that it allows companies to make quick decisions and to expand at a faster pace.

 

How Does Factoring Work?

 

For the purpose of this post, we’ll describe a fictional example as a way of illustrating a common factoring situation.

 

XYZ Transport is a trucking company: their intention is to double their fleet size over the next two years in order to service more clients in the West. The company has just successfully won a new customer on the West Coast who requires freight to be shipped from Oklahoma to Los Angeles. This new customer is more than happy to pay for the service within 30 days; however, that won’t cover all the immediate costs involved, like payroll, fuel, and maintenance costs of running the route.

 

This is a familiar situation for the owners of XYZ Transport: the lack of available cash flow in the past has prevented the company from accepting new business. So now XYZ Transport has turned to a factoring company: they have agreed to sell the West Coast customer’s invoice to the factoring company in exchange for a 90% advance on the total amount – within 24 hours! This much needed influx of cash will replenish the trucking company’s reserves and allow it to continue running the Oklahoma – Los Angeles route. In addition, XYZ Transport now has the added flexibility of taking on new customers.

 

How Much Do Companies Factor?

 

Each company has its own unique business needs, so somecompanies only factor invoices for customers that are slow in paying, whilst other companies factor all of their invoices. Companies can factor receivables ranging from a few thousand dollars right through to millions of dollars each month.

 

What’s the Difference between Factoring and a Traditional Bank Loan?

 

Factoring, also known as Accounts Receivable Financing, is a quick, flexible and effective way for businesses to create a steady cash flow stream. See below for how factoring is different to a Line of Credit at a bank or a traditional business loan

 

 

 

 

Construction Invoice Factoring Articles

Questions You Need to Ask Your Factoring Company

 

In today’s marketplace we’re seeing more and more factoring companies, and factoring fees, rates and agreement terms have become very competitive. This means that, as a potential factoring customer, this competitiveness should work to your advantage. However, there are some issues you must consider when choosing a factoring company to suit your specific requirements.

 

Before entering into any factoring agreement, here are some important questions you should ask –

 

What Are Your Terms?

 

As a factoring customer, you’ll be looking for as much flexibility in your factoring agreement as possible. It may be that you choose a long term contract with your factoring company if it includes flexible rates or a price break. In today’s competitive market, many factoring companies are agreeing to adjust their rates based on competitive offers from other factors or increased factoring volume.

 

The majority of factoring agreements are a one year contract, which appears to be industry standard, and this contract will renew automatically unless you provide the factoring company either 60 or 90 days notice.

 

What’s Your Fee Structure?

 

The fee structure may vary depending on both the factoring company involved and your industry. Some factoring companies charge a flat fee, which is calculated as a percentage of the total value of the invoice. On the other hand, other factoring companies charge additional fees to cover costs associated with doing business, such as money transfers, software, and so on. Ensure that the factoring company you’re considering working with is completely upfront and transparent with you about its terms and fees.

 

Are You Able to Offer Both Recourse and Non Recourse Factoring?

 

Recourse factoring:

 

Recourse factoring is less expensive than non recourse factoring. With recourse factoring, you (being the client) are ultimately responsible if the factoring company is unable to collect on your customers’ invoices. However, you’re not necessarily required to pay the debt out of pocket if you have a recourse agreement and the customer defaults on payment. It may be that the factoring company will withhold a portion of future cash payments or payments held in reserve, with the money being placed in an escrow account until such time as the debt has been paid.

 

Non recourse factoring:

 

When you have a non recourse factoring agreement, the credit risk for the collection of customers’ invoices lies with the factoring company.Therefore, we believe it’s to your advantage to use a factoring company that offers both recourse and non recourse factoring, simply because you may find that some of your customers are more suitable for recourse factoring than others. In addition, you need a factoring company with a strong credit team because they can work with you to ensure you’re dealing with good customers: to a certain degree this will relieve some of the pressure of being responsible for bad debt.

 

How Long Has the Factoring Company Been in Business?

 

With the marketplace becoming increasingly competitive, today we’re seeing the creation of more and more factoring companies. However, many of these companies are recent start ups, with limited industry experience. Make sure you research the factoring company’s history prior to entering into any factoring agreement: also research its background into providing financial services in your specific industry.

 

Do You Have the Capital to Grow with Me?

 

The fact that there’s no limit to the level of financing is the major advantage factoring has over traditional bank lending. As your company continues to grow, so too should the funding of invoices grow with you. Do your research and learn as much as possible about your potential factoring company’s client base and their capital structure.

 

Does this factoring company have a limit to the number of debtors it takes on? What’s a typical account size? What’s the factoring volume of their largest client? You’ll probably find that factoring companies who have been serving your industry for many years will have greater capacity to finance your company as it continues to grow.

 

Is There Anything Else You Can Do for Me?

 

Obviously, factoring is more expensive than a conventional bank loan, and this is partly due to the back office services that your factoring company is able to provide. Besides collections and financing, many factoring companies will evaluate companies in your industry and provide credit information. Therefore, when looking for a factoring company for your business, make sure the one you choose offers additional services and products that can assist you in making good business decisions.

 

How Do We Start Factoring?

 

Fortunately, factoring companies are not unduly concerned about your balance sheet before they decide to work with you, unlike banks. However, they do have a process to follow when selecting new clients, so be sure you understand what the factoring company is looking for when it’s considering you as a client. Are they looking at your credit ratings and/or your customers’ payment histories?

 

Are they looking at your personal credit score?

 

In many cases a company will start factoring because it’s looking for a quick injection of cash, so you need to know how many days the factoring company will take to review and process your application.

 

 

 

 

Construction Invoice Factoring Articles

How Medical Staffing Helps The Medical Industry

 

Mary Henderson sat in her office, waiting for the phone to ring. Her job was a busy one, and she had stopped all her calls and shut her door five minutes before the phone conference was set to begin just to get some time for herself. The truth was she was stressed to her breaking point. Her company Med Staff needed to hire three new people to cover the demand of their clients. The problem was, they couldn’t. They were short on funds.

 

Med Staff did temporary medical staffing. They employed LPN’s, RN’s, and a few others of the same ilk. Companies that needed nursing for a short amount of time paid Med Staff, and the nurses were sent over on short term contracts. Then they came back, and they were sent somewhere else.

 

A retirement home had contacted Mary two weeks ago, they were undergoing an expansion, and they would need temporary staffing until they could appoint permanent nurses to the shifts. Mary had known she didn’t have enough people for this, but she took the contract on anyways, figuring she could hire people. There were always a number of nurses and technicians applying for work at Med Staff, and she knew it wouldn’t be a problem to hire a few new people.

 

There had been a problem though. There simply wasn't enough money in the books to do it. The company was doing fine, but a quick expansion, even as small as three people, simply wasn’t going to happen, not without help.

 

She had gone to the bank for a loan, but they had denied her. It seemed to Mary that the only people who could get loan money from a bank were the people who didn’t need to do so. And then she had found something different, a website online about factoring. She had looked the site over, and set up the conference call.

 

The phone rang, she picked it up. “Hello?”

 

“Hi, is this Mrs. Henderson?” a cheery woman’s voice asked over the phone.”

 

“It is.”

 

“Great! My name is Stacy, I’m going to help you today.”

 

“Okay great.” Mary said.

 

“I’m looking over the form you filled out, it looks like your company temporarily staffs medical professionals?”

 

“Yes,” Mary said. “Nurses mostly.”

 

“Great,” Stacy said. “And if you called me, it means you ran into a snag.”

 

“I took a contract to fill five places in an expanding retirement community. I have two people available but needed to hire three more. Unfortunately, we just don’t have that kind of money in the books right now. We have a few outstanding invoices yet to be paid, but until they come in, there’s nothing I can do.”

 

“Do you know how factoring works?” Stacy asked.

 

“Not really,” Mary admitted.

 

“Okay, well we don’t look at your business credit, we look at your clients’ credit. We know they have some time to pay bills, and we’re interested to see if they can pay those bills. If they can, we become interested in helping you out, because we think all businesses should have a fair shot to make it, and sometimes things just don’t work out.”

 

“This is the first time it hasn’t worked out,” Mary said. “And it’s hard.”

 

“I know. I hear about it every day. The cool thing about my job is I get to help fix it. So what we do, if we feel secure in our ability to help you, is we buy a piece of your accounts receivable. We aren’t just loaning you money, we’re basically becoming active in your business. That is you get the money you need right now, but we have an assurance that we get our money back, later down the road.”

 

Mary nodded behind her desk, even though the other woman couldn’t see her. She had never heard of factoring before she came across the site on the internet, but the way Stacy explained it certainly made sense.

 

The call continued, with Mary giving the information that Stacy would need. She promised to get back to her within a couple of days, and then they hung up. Mary went on with her work, and a day and a half passed.

 

Mary was at her desk when he phone rang then. It was Stacy.

 

“Good news,” she said as soon as Mary said hello. Mary couldn’t help but smile as Stacy went on. “We’re going to be able to help you out.”

 

“You don’t know how great it is to hear you say that,” Mary said.

 

“Believe me, I do,” Stacy said. “I get to say it more often than not, and I know that we’re really helping good people, and good businesses.”

 

“The bank, they couldn’t do anything,” Mary said, she felt salty tears stinging her eyes as they welled there.

 

“They aren’t built to help people like we are. They just want as much money as they can get. We want money too, because it’s a business, but if you don’t succeed, we don’t succeed, and it’s also important to us that we help people.”

 

“So what’s next?” Mary asked.

 

“Well the real answer is I fax some stuff over for you to fill out and sign, but the fun answer is your business gets the help it needs, and you keep going to work each day. Well, not the weekends.”

 

Mary couldn’t help but laugh. “Believe me,” she said. “I work plenty of weekends.”

 

Stacy laughed as well, and then got the fax number she would need. Once again the women hung up and Mary let out a long breath as she sat back in her chair. She used a tissue to dab the tears from her eyes. She knew everything was going to be okay.

 

 

 

You Can Find More Information at  http://invoicefactoringcompanies.org/
and at http://medicalaccountsreceivable.org/

Call Us Today at: 1-800-986-1854