How To Double Your Sales Using Our Account Receivable Factoring

accountreceivablefactoring — Thu, 06 Apr 2006 19:09:13 +0000


Account Receivable Factoring Links Why Account Receivable Factoring is Necessary Your Account Receivable Factoring Company Benefits Comparison of Account Receivable Factoring to Traditional Funding How Account Receivable Factoring works Invoice Factoring History Is Account Receivable Factoring For You On-Line Factoring Request Form	OCF Account Receivable Factoring - Providing account receivable factoring services nationwide - Over 70 years of factoring company experience - Up to 97% Advance Rates What Sets Us Apart Our account receivable factoring program includes the following features • Same Day funding on approved invoices • We do not require a long term contract. • 97% advance rates; tops 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. 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 account receivable factoring volume. OCF provides individualized customer service, by tailoring our flexible invoice factoring programs to fit the individual needs of each of our clients. We strive to be responsive, handling receivables with speed, efficiency, and a personal touch. As a client you are assigned one account administrator who will personally handle all of your account activity and inquiries. This gives us the ability to buy your r eceivables and get the money to you within 12 to 24 hours. Having one person look after your receivable 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. Our funding is primarily done by direct deposit or wire. OCF has more than 70 years of successful cash flow and credit management experience, experience we would love to put to work for you. To talk with a member of our sales team, please contact one of our regional offices at: Toll Free: 888-266-0197 Fax #: 425-702-1874 On-Line Factoring Request Form andrea@ocf.com Why Account Receivable Factoring is Necessary "A sale is not a sale until you collect the money" Are you a part -time banker for your customers?Take a look at your accounts receivable aging schedule and count the number of accounts over 30 days.Congratulations, you are extending credit to those customers. You are not getting paid for delivering your end of the deal in a timely manner and as a result you are providing the use of your money to your customer for free. Not exactly the business you thought you were getting into, is it? Ask yourself this question: If those customers of yours went to a bank, borrowed the same amount of time, would they expect to pay a substantial amount of interest for the privilege? Of course they would! And consider this: Not only are you receiving no interest on that money, but most importantly,you are also losing the use of that money while you are waiting for your customer to pay you. What is the cost of not having this money available? In essence, your customers are asking you to finance their business by extending terms and allowing them to pay in 30 days (and usually longer, right?). But what is it costing you in "missed opportunities" when your money is tied up in your accounts receivable? What's a "missed opportunity"? Here are some good examples: -Materials offered to you by a supplier at below-market prices -A chance to buy a piece of equipment at a bargain -The opportunity to produce more during any given month And the list could go on and on. The cost of extending this credit to your customers has to exhibit an effect somewhere. Someone has to pay the piper. Either: A)you are absorbing the cost, resulting in lower profits, or B) all of your other customers are paying higher prices across the board. One way or another, you are financing someone else's business and perhaps losing money for the opportunity to do it. Large companies are always looking for the most inexpensive way to finance their operations and what is more expensive than free? They often use the "iron" fist in the velvet glove" approach. With the glove they indicate that "we usually get 2/10, net 30 days" terms, but the presence of the first suggests "we will go elsewhere, unless you provide us with free use of your money for 30,60, or even 90 days." The real irony here is that, in some cases, customers may take the discount and still wait longer than 30 days to pay. Large dollar "volume-buyers" have a lot of leverage over small and mid-sized business and they will usually get their "free money" terms somewhere! With account receivable factoring you can win the battle with slow-paying clients! What is Account Receivable Factoring? Cash flow is one of the main reasons businesses fail. At one time or another, every business, even successful ones, have experienced poor cash flow. Cash flow does not have to be a problem any more. Do not be fooled — banks are not the only places you can get funding. Other solutions are available and you do not have to borrow. One solution is called invoice factoring. Account Receivable Factoring is the process of selling invoices to an investor rather than waiting to collect the money from the customer. Oh, the Irony… Account Receivable Factoring has an ironic distinction: It is the financial backbone of many of America's most successful businesses. Why is this ironic? Because acount receivable factoring is not taught in business colleges, is seldom mentioned in business financing plans and is relatively unknown to the majority of American business people. Yet it is a financing process that frees up billions of dollars every year,enabling thousands of businesses to grow and prosper. Invoice 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 a debt your customer has agreed to pay in the near future Is Account Receivable Factoring Company For You? The key to knowing if factoring is for you is to not to look only at the bottom-line invoice factoring fee, but also to consider how your company may increase its profits through factoring.	Our Account Receivable Factoring Programs Can Help You Double Your Sales Let Us Show You How To talk with a member of our sales team, please contact one of our regional offices at: Toll Free: 888-266-0197 On-Line Factoring Request Form