Resources

1. What is accounts receivable financing? [top]

Accounts receivable financing is when a primary funding source - a "Factor" - purchases your accounts receivables. Accounts receivable financing and "Factoring" are often used synonymously. When you finance your receivables ("factor them"), you get cash immediately upon purchase of your receivables by the Factor, no longer having to wait the 30, 60 or 90 days for payment.

2. How does the purchase of my receivables help me? [top]

You receive cash immediately to take advantage of early pay discounts, volume discounts, to meet payroll, to purchase inventory, hire new employees, purchase equipment, etc.

3. Why not just get a loan from my bank? [top]

You can. However, Factoring has advantages. A bank loan becomes a debt on your balance sheet thereby affecting your credit scores, whereas receivable financing merely converts one asset (receivables) into another (cash). Unlike a loan, there is nothing to repay. In addition, the amount you factor can grow infinitely without additional paperwork. And, the initial application process is much easier for Factoring than applying for a bank loan. Banks are heavily regulated and require much more information.

4. What will it cost me? [top]

The costs can vary depending on the average size of the receivable, average receivable turnover, and size of your company. You can usually get a quote on the costs within two days from receipt by us of your application.

5. Is Factoring a short-term or long-term solution? [top]

It could be both. Factoring can provide an immediate infusion of cash, which can be used for short-term matters. But also, if used regularly, it can make your cash flow much more regular and predictable.

6. How long will it take to convert my receivables to cash? [top]

The initial application and review process can be accomplished in just a few days. Once approved, funds can be wire-transferred within hours. After that, all future invoices can be presented, reviewed, approved and funded, often within 24 hours.

7. Do you become a partner in my Company? [top]

No. We are merely purchasing an asset from you (an invoice) as you present it. But in a way, we can become your outsourced credit and collections department. You will probably receive a lot of advice and labour that could substantially improve your billing and collections at no additional charge.

8. What are the disadvantages to Factoring? [top]

Some people fear that when your customer learns that you use a Factor, your customer may question your credit. This is a myth. More often than not, your credibility with your customers will increase because you'll have the cash to fulfill larger orders for them and you'll be proving your sophistication and professionalism by utilizing this financing technique. Also, you'll be able to take advantage of early pay and volume discounts from your suppliers, thus improving your credit, relationship and credibility.

9. In what industries do you specialize? [top]

We can support any industry that has quality credit customers. However, we especially like the manufacturing and wholesale trade industries. We also like call centers, employment agencies, trucking companies, business service providers and companies with municipal, provincial, and federal government contracts.

10. How long of a commitment does this represent? [top]

Only as long as you benefit.

11. Do you take over the billing function within my business? [top]

Your billing and collections functions remain under your control. We provide an extremely professional accounts receivables management and collection service for your benefit.

12. What do I do next? [top]

Simply Contact Us to discuss your funding needs. We will respond to you within two business days with a preliminary indication of how we may be able to work together.