Discount Factor



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Imagine flexbility that no one else offers.
Unlike the others, you choose what works best for you;
you sign no long-term contracts; you pay no fees when your account is inactive.
You set up your contract to meet your cash flow needs, not ours.
You can choose between using our most advanced technology or
using the old-fashioned systems ­- we maintain both for you.
Unlike the others, our objective is not to force you to conform to us,
but to get you the cash you need in the quickest and most efficient manner.
Having one person look after your business financial factoring account
also makes it easy for you to decide
which invoices you are going to sell and
when you want to sell those invoices.

Please contact us today and our seasoned invoice factoring
professionals will help you get the cash you need today.
- Call us at 1-800-986-1859

- Complete the Online Invoice Factoring Request Form

 

More Business Factoring information
Factoring has an ironic distinction: It is the financial backbone of many of America's most successful businesses.
Why is this ironic? Because factoring is not taught in business colleges, is seldom mentioned in business plans and
is relatively unknown to the majority of American business people. Yet it is a financial process that frees up
billions of dollars every year, enabling thousands of commercial financing
businesses to grow and prosper.
Factoring has been around for thousands of years. Factors are investors who pay cash for the right to
receive the future payments on your invoices.
An unpaid receivable or invoice has value. It is an a r financing
debt your customer has agreed to pay in the near future.

Factoring Principals
Although factoring deals exclusively with business-to-business transactions, a large percentage of
the retail business uses a invoice finance factoring principal. MasterCard, Visa, and American Express
all use a form of factoring in their retail transactions. Using the purest definition of the word, these large
consumer finance companies are really just large factors of consumer paper.

The best plan for invoice factoring fees is that based on a per day basis. The average per day factoring
fee may be between 0.095% and 0.085%, and continues to be so as long as the commercial factoring
invoice is with the factor.

Because a discount factor extend credit not to their clients but to their clients' customers, they are
more concerned about the customers' ability to pay than the client's financial status.
That means a company with creditworthy customers may be able to factor even if it can't qualify for a loan.

Discount Factoring is not a loan; it does not create a liability on the balance sheet or encumber assets.
It is the sale of an asset - in this case, the invoice. And while discount factoring is considered
one of the most expensive forms of financing, that's not always true. Yes, when you compare the
discount rate a discount factor charges against the interest rate banks charge, factoring costs more.
But if you can't qualify for a loan, it doesn't matter what the interest rate is.
You may be a candidate for a discount factor if your company regularly generates commercial invoices
and you could benefit from reducing the time receivables are outstanding. Discount Factoring may provide
the cash you need to fund growth or to take advantage of early-payment discounts suppliers offer.

invoice factoring company
and account receivable factoring
and accounts receivable financing

In discount factoring, the exporter avoids tying up working capital and spending substantial amounts of time in administering
receivables. The discount factor assumes financial ability of the customer to pay, and in addition, performs the administrative
duties of collections on the receivables. Since discount factors generally have vast networks and contacts overseas,
as well as extensive experience in the business, they can conduct these activities easily and at a manageable cost.

 

Although discount factoring offers financial flexibility and reduced risk, exporters should be aware of certain limitations:
discount Factoring  works best for both new and is already established companies and wants the flexibility of selling on open account.
A Discount Factor generally will not take on a client for a one-time deal, and may require access to a certain volume of the exporter's yearly sales.
A discount Factor generally do not work with receivables having greater than 180-day terms.

freight factoring
account receivable factoring
Invoice factoring