|
|
Company Information
Receivable Financing Frequently Asked Questions
Contact us
Our Accounts Factoring Company Locations
Invoice Factoring Testimonials
Discover Why Business Chooses Us
OCF INVOICE FACTORING
COMPANY
- Providing accounts factoring services
nationwide
- Over 70 years of factoring company experience
- Up to 97%
Advance Rates
What is Accounts Receivable Financing?
Accounts receivable financing is the selling of outstanding invoices or
receivables at a discount to a finance or factoring company that assumes the
risk on the receivables and provides quick cash to your business. The amount of
value assigned to the account depends on the age of a receivable. A more current
invoice will pay more. Any accounts receivable over 90 days typically are not
financed.
Why Invoice Factoring is Necessary
In recent years, an increasing number of businesses have
discovered
that invoice factoring can combat the ups and downs of
unpredictable cash flow cycles.
More
importantly, factoring companies are providing the business community
with a viable
credit financing source of working capital when conventional business financing is not always an option.
People consider the invoice factoring
discount a small cost of doing business. A two-three-percent factoring
discount for a 30-day invoice is common. Compared with the problem
of not having cash when you need it to operate, the receivable credit line discount is negligible.
Look at the invoice factoring company collecting the discount as though your business had
offered the customer a discount for paying cash. It works out the same.
How Invoice Factoring AccountsWorks
Setting up a factoring relationship is quick and easy in comparison
to other forms of business financing. Applications simply call for basic
company information and a customer list. Years of profitability are not
required which makes invoice factoring an option for startups generating accounts receivables.
It is possible that funding can occur in as little as a couple of
days after the invoice factoring company receives your credit application and invoices.
Benefits of Accounts Factoring Invoices
Factoring
invoices can offer many benefits to cash-hungry companies.
Rather than wait 30, 60, 90
days or longer for payment on a
product or service that has already been
delivered, a business
can factor (sell) its receivables for cash at a small
discount
off the amount of the invoice.
Payroll,
marketing efforts, and working capital are
just a few of the business needs
that can be met with this instant cash from factoring.
Factoring
invoices provides the means for a manufacturer to
replenish inventory and make more
products to sell:
There is no longer a need to wait for earlier sales to be
paid.
Factoring is not just a cash management tool for manufacturers:
Almost
any type of business can benefit from factoring.
Why Receivable Factoring
Appeals to the Start-Ups
Factoring is especially appealing to young and rapidly growing companies. Since the invoice factoring process shortens their business cash flow cycle, these businesses can grow faster. The ability to make more products to sell while waiting for invoices to be paid is largely eliminated. Such businesses usually net much more profit with receivables factoring than without, even when the credit discount is considered.
Accounts Receivable Factoring Company vs. Bank Loans
Factoring has been around for thousands of years. Financing companies pay cash for the right to receive the future payments on your receivables and invoices. An unpaid accounts receivable or invoice has value. It is a debt your customer has agreed to pay in the near future.
So, why not simply go over to the friendly banker for an account receivable loan to alleviate cash flow problems? A small business credit loan can be difficult if not impossible to receive, especially for a young, high-growth operation, because small business money bankers are not expected to decrease lending restrictions soon. The relationships between businesses and their small business bankers are not as strong or as dependable as they used to be.
Account Receivable Factoring Frequently Asked Questions
Unlike The Others, You Actually Make Money With Our Account Receivable Factoring Rates
OUR PROVEN
INVOICE FACTORING PROGRAMS
HELP BOOST YOUR CASH PROFITS
Contact our account receivable factoring specialists at:
Toll Free:
888-266-0197
On-Line Factoring
Request Form
Partial List Of Industries That We Provide Factoring
Invoice Factoring
Staffing company
Financing credit for staffing service companies accounts.
Financing
Building Products Distributor
Financing accounts receivable for clients in the Building Products Distributor industry accounts
Financing
Manufacturing company
Financing accounts receivable invoices for manufacturing
companies accounts
Invoice Factoring
Maintenance Service
Financing accounts receivable credit for maintenance service companies accounts .
Financing
Service Providers
Financing accounts receivable invoices for small and medium sized service companies
such as
commercial suppliers, technology consultants
and janitorial companies,etc.accounts
Financing
Metalized coating
Financing accounts receivable credit for metalized coating service companies.accounts
Invoice Factoring
Auto Parts company
Financing accounts receivable invoices for auto parts
companies accounts
This form of financing is a type of secured loan in which accounts receivable
are pledged as collateral in exchange for cash. The loan is repaid within a
specified short-term period as the receivables are collected.
Accounts receivable financing is most often used by businesses facing
short-term cash flow problems. The major source of accounts receivable financing
for small businesses are commercial finance companies, although banks will also
consider receivables as security for a business loan.
Accounts receivable are typically "aged" by the borrower
before a value is assigned to them. The older the account, the less value it
has. For example, financiers often lend approximately 75 percent of the face
value of accounts less than 30 days old. Some lenders don't pay attention to the
age of the accounts until they are outstanding for over 90 days, and then they
may refuse to finance them. Other lenders apply a graduated scale to value the
accounts so that, for instance, accounts that are from 31-60 days old may have a
loan-to-value ratio of only 60 percent, and accounts from 61-90 days old are
only 30 percent. Delinquencies in the accounts and the overall creditworthiness
of the account debtors may also affect the loan-to-value ratio.
Accounts Receivable Financing Powder Coating
Financing accounts receivable invoices for companies that provide services and products
to Powder Coating clients accounts
Accounts Receivable Financing Cable Contractors
Financing accounts receivable invoices for cable contractors
companies
Accounts Receivable Financing Utility Construction company
Financing accounts receivable invoices for utilty construction
companies accounts
Invoice Factoring Machine Shop
Financing accounts receivable invoices for machine shop
companies accounts
Accounts Receivable Financing Oil and Gas Industry
Financing accounts receivable invoices for companies that provide services and products
to Oil and Gas Companies
Accounts Receivable Financing Trucking company
Financing accounts receivable invoices for trucking companies,
freight brokers and commercial
transportation companies
Invoice Factoring
Freight Forwarding company
Financing accounts receivable invoices for freight forwarding
companies accounts
Accounts Receivable Financing Healthcare Staffing company
Financing accounts receivable invoices for staffing
companies accounts
Factoring
Government Contracts
Financing accounts receivable invoices for companies that provide services and products
to state and
federal government agencies accounts
Invoice Factoring
Distributors
Financing accounts receivable invoices for distributor
companies accounts
Financing Freight & Trucking
Financing accounts receivable credit for freight and trucking service companies.
Invoice Factoring
Manufacturers
Financing accounts receivable invoices for companies that provide services and products
to Maunfacturing clients
Accounts Receivable Financing Medical Practitioners
Accounts Financing credit for medical practitoner firms
Accounts Receivable Financing Security Guards
Accounts Financing invoices for companies that provide security guards
to commercial,
industrial and government sites
Invoice Factoring
Temp Staffing Agencies
Accounts Financing invoices for staffing and temporary employment
in the business and
medical services field
And Many More
More Links to Help You Find Information
|
We are currently providing account receivable factoring services nationwide including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New
Jersey, New Mexico,
New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Just Some of The Industries That we Provide Invoice Factoring Services
Freight
Factoring
| Government
Contract | Medical
Staffing Factoring
| Temp
Staffing Factoring
|
Oil
& Gas Industry Factoring
|
|
Staffing
invoice factoring company
Building
Products Distributor cash flow factoring
Building
Products Waterproofing Distributor account factoring
Manufacturing
account receivable factoring
Maintenance
Service receivable factoring
Machine
Knives invoice financing company
Custom
Auto Body for Emergency and accounts receivable factoring company
Municipality
Vehicles factoring loan
A monthly interest rate on accounts receivable is calculated by applying a daily
percentage rate to the receivables outstanding each day (the less the
outstanding receivables, the lower the interest charge). A default on payment
can result in the financier seizing the pledged accounts receivable. Some states
require notice to the business's debtors that their debt has been pledged as
loan security. In states that do not have this requirement, some businesses do
not notify their customers because the businesses fear that customers might
perceive this method of financing as a sign of financial instability.
Parts
and Installations business factoring
Metalized
coating invoice factoring company
Auto
Parts accounts factoring company
Powder
Coating invoice factoring
Utility
Construction receivables factoring
Machine
Shop invoice financing company
Trucking
invoice factoring company
Trucking
- Refrigerated Freight factoring
Trucking
- Dry Freight truck factoring
Trucking
- Over the Road freight factoring company
Security
Services account receivable financing
Commercial
& Industrial Refrigeration invoice factoring
You Can Learn More About Factoring Services Here
How To Switch Invoice Factoring Companies
Fuel Debit Card Programs Available For Freight and Trucking Companies
Contact Us
|
|
