A Breakthrough Factoring Company
Offering Factoring Programs Tailored
to Make You More Money

Is Factoring For You?

The key to knowing if factoring is for you is to not
to look only at the bottom-line factoring fee, but also to
consider how your company may increase it's profits
through factoring.

Here is additional information on factoring
to help you with your decision.

How are fees and advance rates determined?
It is based on several factors:
The creditworthiness of your clients
Your monthly billing volume
Average invoice size
Average days to payment
Fees can range from 2-5 % of the invoice's face value.
For example if the invoice's value is $1,000;
a fee of 3% equals $30.

What is an advance?
The amount of money you receive immediately when we
buy your invoice. The balance is returned to you when
your customer pays the invoice.
Advances range from 60-95% of the invoice's face value.
For example if the invoice's value is $1,000 an advance
rate of 80% equals $800. The balance of $200 less the
factoring fee is returned to you when your
customer pays the invoice.

Comparing Bank Lending Rates to Factoring?
When compared to bank lending rates, factoring
initially appears to be very expensive. Here are five typical
questions/concerns that are raised by potential
factoring clients

  1. Wow! 3 points per month! That's 36 percent year!
    It is tempting to annualize the numbers, but that
    is an "apples and oranges" comparison.
    Banks loan money at an annualized interest rate,
    12 percent per year for example. We purchase
    your receivables at a discount. The products are
    different and there are other inconsistencies to this
    inappropriate comparison

    The bank provides the money only one time,
    the day that you receive the loan; we provide money continuously. As an example, consider a bank
    loan for $100,000 at 12 percent. You receive the
    $100,000 just one time and then pay $1,000 interest
    per month interest and you still owe the $100,000.
    Or the bank could provide you with a line of
    credit that you use only
    when you need the money but the bank is charging
    you for that privilege and if you need to increase
    your line you need to go through the qualifying
    process all over again.

    When you factor $100,000 each month for
    a year you have the use of $1.2 million (12 x $100,000)
    over the year.
    Unlike a bank loan where you have just $100,000 one time. Assuming a 3 point discount, the fees over the year will
    be 12 x $3,000 or $36,000, which is still 3 percent of $1.2 million. And at the end of the year you have no debt!

  2. I'm only making 3% profit, how can I pay you 3 points?
    A company making only 3% net profit can do more business volume as a result of factoring, and the larger volume will result in a higher profit margin because fixed costs do not increase with volume. The added business at a higher marginal profit leads to an increased overall profit margin. As the volume increases, the cost of production decreases, so that profits increase. Fixed costs i.e., rent, electric, insurance, etc., increase very little or not at all with volume. An increase in business will not affect rent. Electric bills may rise slightly. Workers compensation insurance may rise slightly. These costs do not increase as do direct production costs.

    Let's graphically do the math assuming you can double your sales
    Without Factoring
    Monthly Gross Sales $50,000
    Cost of Goods Sold $30,000 60% of Gross Sales
    Monthly Gross Profit $20,000 40% of Gross Sales
    Fixed Expenses $10,000
    Variable Expenses $8,500 17% of Gross sales
    Factoring Fee N/A
    Total Expenses $18,500 37% of Gross Sales
    Monthly Net Profit $1,500 3% of Gross Sales

    With Factoring
    Monthly Gross Sales $100,000
    Cost of Goods Sold $60,000 60% of Gross Sales
    Monthly Gross Profit $40,000 40% of Gross Sales
    Fixed Expenses $10,000
    Variable Expenses $17,000 17% of Gross Sales
    Factoring Fee $3,000 3% Fee
    Total Expenses $30,000 30% of Gross Sales
    Monthly Net Profit $10,000 10% of Gross Sales

  3. But I only get 80% of my money upfront!
    Let's assume an advance rate of 80%. Let's also assume that you begin factoring in January. You have factored $100,000, we pay you $80,000 of that money upfront, with the remaining money making up the fee (3%) of $3,000 and the reserve (17%) of $17,000.
    Now in February, you once again factor $100,000 and receive $80,000. However. you also receive your January reserve of $17,000(assuming your customer pay in 30 days). So for February, you actually receive 97% of your money, instead of 80%.
    In the second month and going forward you are basically receiving 97% of your cash flow.

  4. But what if my customers take longer than 30 days to pay?
    You have several options, Assume your client takes 60 days to pay you bill your client in the normal fashion and simply allow 30 days to go by prior to factoring that invoice. That way you pay the 30 day fee.
    Another way is to factor your faster customers first for the cash you need.



















































































































































































We Can Offer You What Others Can't

Unlike other factoring companies, our program includes the following features at no additional charge:

24 hour funding on approved invoices
Highest advance rates in the industry
Credit analysis on new and existing customers
Continuous collection management and follow up on factored invoices
Invoice and statement mailing (postage included)
Account status inquiries anytime;
24/7 online account access.

We allow you to electronically submit Invoices
Free credit checking on new customers at no additional cost

Personalized Service - you have one dedicated person and his or her assistant who handle your account.
You don't have to start over each time you call
with a new person
We are seasoned professionals with an average of 11 years industry experience per account executive
(Well above the factoring industry norm)

Our flexibility allows you to maintain control:

You select accounts you prefer to factor on an invoice by invoice basis.
You control total factoring costs by only factoring on an "as needed" basis.

Up to 97% Advance Rates:

Advance rates are based on overall risk associated with a particular industry as well as experience and track record. We hold reserve accounts to accommodate industries which typically experience dilution and that we would otherwise not be able to service. Advance rates range from 80% to 97% of the gross invoice amount.

Fee Structures:

Fees are determined based on your industry, the credit worthiness of your customers, how quickly your invoices turn, and monthly factoring volume.

Call our factoring specialists at