Invoice factoring exists to gap the time frame from the day you invoice to the time you get paid on your aging invoices. It’s a cash flow management tool, which is available to most businesses that sells products or renders services, to other businesses. Do you have any account receivables that you are waiting to be paid on? If so, would it help your cash flow if we purchased your account receivables today and paid you on them tomorrow? When you factor your invoices, you never have to wait 30, 60 or 90 days to get paid, ever again.
Q: Why haven't I heard of Factoring and should I factor my Invoices? A: Simply, factoring is the purchase of accounts receivable (your invoices) for immediate cash. It is an alternate way to obtain financing that provides billions of dollars to industry each year. You probably haven't heard of factoring because it is a financial tool used historically by big corporations to help meet their cash flow needs. At Pete Wierzbicki Financial Services, Inc., bring the value of this time-honored tool to small and mid-sized companies.
Q: Why should I sell my Account Receivables? A: You need cash flow to run your business: whether it's to meet your financial obligations, to buy inventory, to invest in the growth of your business. Waiting 30, 60 or 90 days can put a tremendous burden on your business. Selling your accounts receivable to our factoring company, provides you with immediate cash that you can put towards your most critical business objectives. Sell us your aging account receivables and spend less time chasing money and more time making it!
Other reasons to factor, include:
You want more control over your cash flow. You want to grow your business quickly. You have immediate financial obligations. You want to fund new sales and marketing initiatives. You need new equipment or staff to fuel expansion efforts. You want to satisfy payroll and tax obligations. You want to improve your credit rating. You want to offer more attractive credit terms to your customers. You want to reduce or eliminate late payment expenses. You want to take advantage of current trade discounts. You have a weak balance sheet. You have poor credit.
Q: Is Invoice factoring a loan? A: No. We are not a bank. We purchase your accounts receivable for immediate cash. There's no interest involved. You pay a discount fee for our service. You sell us your aging account receivables today and we will fund you on them tomorrow.
Q: Which is better: getting a bank loan or using a factor? A: Getting a loan from a bank is not always that easy, especially if you are a startup company or if you have credit issues. Banks often have strict lending requirements, long time frames to get you a loan and it's a painful process dealing with any bank. Even large, well established businesses have complications obtaining a bank loan. Let's face it, if you were plush with cash, you would not need to factor your invoices and you would not need a bank loan.
Q: If you purchase my invoices, who bills my customers? A: You can still invoice your customers or we can do it for you. You prepare your invoices as usual and forward them to us for immediate cash. We send the invoice to your customers.
Q: When do I get paid? A: You send us an invoice, we send you cash - usually within 24 hours, after the verification process.
Q: How much does it cost me? A: We look at a variety of things - your customers' creditworthiness, average payment cycles, the dollar amount and number of invoices you sell us, etc. - to determine your fee. Call us at 1.800.622.6658 to find out how factoring can pay for itself.
Q: Do I need to sell you all of my invoices? A: No. Your cash flow needs should dictate your decision to sell us your invoices. Need cash, sell us an invoice. It's as simple as that.
Q: Do you have any minimum or maximum requirements? A: No. We keep things simple. Call Pete at 1.415.889.8216 to discuss your particular needs.
Q: How do I get started? A: Just complete our one page application. If you prefer, apply by phone. Call Pete at 1.415.889.8216.
