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Accounts Receivable Financing

Nationwide Business Finance is a premier national lender providing financing to small and medium sized businesses nationwide.

Unlock the Cash Tied Up in Your Receivables.

Accounts Receivable Financing (Factoring) is designed for businesses that want to improve their cash flow by not waiting 30,60, 90 days for a customer to pay. Factoring is used in almost every industry today that sells business-to-business or business-to-government.

Factoring is not a loan and differs from borrowing in that your A/R (invoices) are sold at a discount rather than merely offered as collateral. It's the same concept as offering a discount for early payment of your invoice (for example 1% 10, Net 30 days), only now you get the money in 24-48 hours and it doesn't depend on your client wanting to pay early.

New businesses and fast growing companies have a huge demand for cash. And chances are their A/R is growing faster that their cash flow. Until growth levels off, they can never catch up!

How it Works

Once your account has been opened, the following steps are the typical scenario:

  1. An invoice is created for goods or services delivered.
  2. A copy of the invoice is submitted via fax or email.
  3. The factor makes sure your customer is creditworthy, willing and able to pay the invoice when due.
  4. Cash advance (usually 70 - 85%) is wired to you. (Note-your cash advance percentage will be pre-determined with quote)
  5. Factor does administrative work of collecting payment.
  6. Payment is remitted to factor when due.
  7. Balance is remitted to you, less the discount fee. (Note-your discount fee will be pre-determined with quote)

What it costs

Discount rates and advance amounts are established by a combination of the following: monthly volume, your customer's credit worthiness, invoice sizes, and average payment cycle.

The submission of a simple 2-page application along with your A/R aging report will allow us to quote you a discount rate & the percentage of your invoices that will be advanced.

Other normal charges may be credit reports on clients and bank wire transfers.

Here are some of the benefits

  • Avoid the loss of business to competitors who are better financed
  • Spend less time managing your receivables and more time managing your business
  • Get cash for your invoices within 24 hours
  • Stabilize cash flow
  • Take advantage of purchase discounts
  • Stop worrying about meeting payroll at the last minute
  • Improve your company's credit status
  • Pay off loans and other debts
  • Meet seasonal demands
  • Offer better credit terms to your customers
  • Your "Line of Credit" grows as your business grows
  • Purchase inventory sooner and fill orders faster
  • Fund marketing efforts to grow your business
  • Reinvest in your business
  • Quick, simple & straightforward
PROFIT COMPARISON
 
Currently
With Factoring
Annual Sales
$1,000,000
$2,000,000
20% Gross Profit
$200,000
$400,000
Overhead
$60,000
$80,000
Cost of Factoring
N/A
$60,000
     
Net Profit
$140,000
$260,000
Net Additional Income = $120,000


Frequently asked Questions

Q: How much does it cost?
A: Our fees are determined by the amount financed, average invoice size and collection time. All fees are clearly stated in your agreement; there are no hidden charges.

Q: What types of receivables can be factored?
A: Just about any verifiable invoice for services rendered or products delivered, due from a creditworthy company.

Q: Do we bill on our letterhead or the factor’s letterhead?
A: You continue to bill your invoice on your company letterhead, but the payments must be remitted to our address.

Q: Must I agree to finance a minimum volume of future receivables?
A: No. Finance as you need it. Stop when you wish and continue as needed.

Q: What will my customers think?
A: Factoring is used by many of the largest corporations in the world. Many of our existing customers do business with companies such as Exxon, Mobil, Wal-Mart, General Motors and many Fortune 500 companies. Factoring is a widely accepted method of business financing and has never created a problem for any of our customers. Now you can keep the conversations with your customer about business and leave the topic of collecting payments to the factoring company.

Q: How long does it take to get approved for factoring?
A: Once all the information is received, decisions are made quickly, eliminating long waits for loan committee approval. The quicker we receive preliminary information on your company, the quicker we can submit a proposal for your consideration.


 

 

Contact us today and one of our financial specialists will give you a
no-cost analysis of what we can provide for your company.

Nationwide Business Finance, Inc.
2308 Via La Brea
Suite 101
Palos Verdes Estates, CA 90274
Phone: 424-206-2792 • 424-206-2783
Mobile: 917-826-1883
Fax: 424-206-2793
E-Mail: info@nationwidebusinessfinance.com