We only need to know that the company making payment on your invoice can and will make the full payment.
First: Your company must have approximately $20,000 per
month in accounts receivable.
Second: You need to have creditworthy customers.
Third: We must be able to verify your invoices.
There are two types of reserves, Earned and Accrued. For example, when we purchase an invoice and advance 80% of the face value, the other 20% is considered Accrued Reserves. When we receive a payment for an invoice we purchased, we pay back the 80% advanced and the balance, less accrued factoring fees, becomes Earned Reserves.
a. Reserve Disbursement: We automatically disburse reserves on the third business day following the last day of the month and the 15th of the month. In other words, all payments received from the 1st of the month through the 15th of the month are disbursed three business days after the 15th.
b. Reserves held for aged receivables: If we reasonably believe that an account will not pay certain invoices(s), we will hold reserves to cover the amount owed us for the invoice(s) in question. If an invoice(s) has aged beyond 60 days (assuming 30 day terms), we feel there is ample reason to believe the invoice(s) may not be paid and we will begin withholding reserves to cover the questionable invoice.
c. Non-Factored Receivables: Because we do not require our clients to factor all of their receivables, we do receive payments for invoices we did not purchase. If you need these funds prior to the scheduled disbursement date, you can request a disbursement once the funds have cleared our account. We do ask that you give us one-day notice for our planning purposes.
d. Special Reserve Disbursements: No more than once a week, you may request a special disbursement of available reserves. These funds must have cleared our account and you need to give us one day advance notice. We charge a $50 administrative fee for this service as we incur costs drawing the funds to disburse.
We provide 24/7 access to a number of reports with real time reporting. Once you are setup in our system and we have processed your first schedule, you will be given a user ID and password that will allow you to access our secure reports at your leisure.
a. Purchase Report: This report lists all invoices that have been purchased and shows the breakdown for the amount advanced. This report displays the Schedule Number, Purchase Date, Account ID, Debtor Name, Invoice ID, Invoice Date, Due Date and the Computed Advance.
b. Collections Report: This report details all payments received and invoices that have been closed out in our system. It will show the Invoice Number, Cash Advanced, Cash Collected, Check Number and Date Received. You can view any date span you may need. Additionally, we have separate reporting that will show a copy of the check and any remittance details. In addition, this report will show Non-Factored payments (payments for invoices we did not purchase) and invoices or parts of invoices that we close-out from Reserves as indicated by “AR” (Applied Reserves) on the report.
c. Reserve Account Report: This report will show all details associated with your reserve account. Payments are listed and will show the breakdown, advance, fees and rebate to the reserve account. For detailed information about fees associated on a particular invoice, this is the best source. This report will also show charges to your account and the total Earned Reserve Balance. A more detailed explanation of this report is included on the following pages.
d. Client Summary Report: This report will summarize all account activity for the specified period of time.
e. Invoice Aging Report: This report will show all open invoices by account with the age and value of each invoice. The age of the invoice is based on your invoice date.
It is entirely up to you, the client, to determine when you submit an invoice and which accounts you want to factor. However, below are a few tips to help the process:
a. Submit invoices a few days before you need funding. This will give us ample time to verify the invoice.
b. Submit accounts that are consistent payers. If you know a company pays every 30 days, you can better manage your financing cost and obtain better control of your cash flow.
c. Submit larger companies, generally large corporations will have better credit, they will have some experience with factoring companies and they often have set procedures for setting up the factoring company in their A/P system.
d. Hold invoices until you know you need the funds. The longer you hold an invoice, the less it will cost you in factoring fees.
Our vendor relationship programs are designed to strengthen all growing companies. Enabling your operations to run more efficiently because the program empowers your vendors to grow their businesses.
We will tailor a virtually invisible structure that enhances your current client / vendor relationship by enhancing the efficiency of your operations, greatly reducing your operational costs and generating additional revenues for your company.
We do realize that there will be times when you won’t be able to raise funds through capital markets or unsecured bank loans. That’s why we emphasize asset-based lending. We happily assume the responsibility of alleviating your funding issues. For you, what we do is to make this type of lending a lot less complex.
No. Supply Chain Finance programs require confirmation of payment amounts and dates, which creates issues for both IT and accounting. This payment acceleration program does not require confirmation and does not involve other departments.
We understand how difficult and time consuming it can be to find the right funder, and that is why we are here to support your needs.