818- 594-1272

Business Funding – A/R Funding (aka Factoring)

FAQ’s – Frequently Asked Questions

Accounts Receivable/Invoice Funding [FACTORING] 
1. What is Accounts Receivable Funding (aka Factoring)?

Accounts Receivable Funding, also known as Factoring, or Invoice Financing … is a quick and simplified way for you to get cash for your business when you need it.  Use this alternative financing tool to sell your Accounts Receivable (one or more business Invoices) to a Factoring company and get cash for them immediately – in 2 days or less.

 – What Does that Mean for Your Business?
(a) – It means that with cash in hand, you easily meet payroll, overhead and other expenses with no sweat. 
(b) – It means that if you’re waiting too long for customer payments, you’re “playing banker” to them (…and you’re not in that business).
(c) – It means you no longer wait & wait for customer payments, which is a drain on your resources.
(d) – It means when you’ve got readily available money, it frees up your time to… develop a larger customer base, create new opportunities and expanded marketing strategies, acquire additional staff and facilities as needed, negotiate better pricing terms with suppliers… ever increasing your business growth.

 

 2. What Kinds of Businesses Use Accounts Receivable (A/R) funding?

  – A whole host of varied businesses that provide products and services to other Businesses (B2B) and to Government agencies (B2G), and offer credit payment terms by issuing Invoices to their customers.
– –  These include ==> Manufacturers and Distributors of…
•  Sports Equipment  Medical Equipt. and Supplies

•  Office furniture  • Apparel, Shoes, Accessories  Cosmetics
• Industrial products, including  = >  motors, machine tools,  
hydraulics, compressors, chemicals, audio/video equipment  
– –  Companies providing ==> Services such as...
• Temporary Staffing  (office, nursing, skilled trade),
• Security Guards & Alarms   • Cleaning/Janitorial services
Graphics Designs    • Architects  
• Engineers   IT Expertise 
Computer software   • Bookkeeping  Cable Installers
• Trucking & Transportation… and many more.  —>
(See HOME Page, ‘Our Services’ for additional businesses that benefit from A/R funding.)


3. How can My Business Qualify for Accounts Receivable (Invoice) funding?

  – Just tell us a little about your company and its officers, your customers, how much money you need and how soon you need it. Then complete a short Application, and e-mail it to us. (Snail mail works fine as well.) We will respond to you the same day or within 24 hours.


4.  All well and good.  But what if…
my business is less than 2 years old, my credit isn’t so hot, and I had a bankruptcy several years ago, so cannot currently qualify for a traditional bank loan?

  – Not to worry.  If you’ve issued invoices to creditworthy customers for work you completed for them, you’re still in a good position to qualify for Invoice Financing. Just let us know your circumstances up front so we can get you the best funding for your situation.


5. So How does the Funding Process work?

•  Application – submit this along with the few requested documents.
•  Discuss – your special financing needs with Sea-Green Financial and our selected Funder; ask and get all your questions answered.
•  Evaluation – After evaluating your business and documents and completing their
due diligence” our Funder sends you a formal Proposal (term sheet).
•  Review – You review this proposal/term sheet with your Consultant and Funder and make any changes or edits you feel are necessary and are agreed upon.
•  Signatures – Have the designated principals sign the final Agreement and return
it to the Funder… ASAP for expedited service.
•  That’s it. Now start submitting the invoices you want funded.

 – No long committee decisions, no big binder full of financials going back 5 years, no compensating balances, etc.  Just the requested documents verifying the essentials of your business, and getting the most flexible plan that meets your financing needs. 

 6. How Soon can I get funding for my invoices?

    You can get funding as soon as your account is set up. Submit approved invoices, your Funder purchases them and wires you the money within 24-48 hours. You’ll get two payouts:  the first will be the greater portion (around 75%-85+%) of the face value of the invoices. The balance is sent back to you as soon as the Funder/Factor collects payment from your customers (less the discount, aka the fee). 

 7. Anything Else I need to know?

  Yes. Your Factor will alert you to “red flag” financial circumstances surrounding both new and existing customers, to avoid potential bad debt. Also, you can review your account status online any time you wish,  24/7.

 8. Can I Amend my agreement with the Funder if my circumstances change?

    Businesses and economic conditions are continually changing. Recognizing this and because they’re savvy and very flexible in dealing with clients, your funder can usually meet your growth or changing financing needs. A phone call to let us know what additional or changed services you require is all you need do.  424/ 394-1672

Know that we continue working on your behalf throughout your funding process and are always available to answer any of your questions.   

Remember:  “Sell Invoices on Monday and
get money on Wednesday.”

  Join the ranks of no-hassle financing users. Give us a call and get your business qualified Relax – no initial commitment – 424/394-1672

  For your Personal Review, dial
424/ 394-1672
Speak to an associate or Marcie Green

 

Sea-Green Financial Services
Encino, CA  91436

website:  SeagreenFinancial.com
e-mail:  Marcie@seagreen4cashflow.com

 

 

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