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
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
Email Us
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
Email Us
