10 Things to Ask Your Factoring Company
Factoring is the purchase of your accounts receivable (invoices) in order to provide you with the cash flow you need when you need it. Factoring is a widely accepted business practice used by large, mid-sized, and small companies.
In most cases, we can have you the cash you need in 48 hours. Once you've established your account, the process takes just 24 hours.
Visit our Test Drive for an in depth explanation of our process.
Here's how it works. You perform a service or deliver a product and you are ready to invoice your client, the amount is $25,000 (it could be as high as $100,000). Fax or e-mail a copy of the invoice to CCF so we can begin working for you right away, then overnight us the original.
No, we never ask you for financial statements or require a company audit. The only information we need to get started is contained in our Startup Checklist.
There are no contracts with CCF. We can provide you cash for one invoice or cash for all of your invoices. Once you create your CCF account you can use it as much or as little as you'd like. The bottom line is that you're in control.
Any type of receivable for which a service has already been rendered or a product has been delivered. There are just a couple of exceptions that your CCF representative will go over with you.
We pay you 70%-80% of the invoice amount right away. When we receive payment for the invoice, we send you the remaining 20%-30% less CCF's service fee. View the CCF Test Drive to learn more and take a look at our rates table.
Selling your receivables to CCF only changes the address to which your clients remit payment. Your clients don't need to pay faster, and the name on the check (your business) stays the same.
No. We can work with any business or government agency in the United States.
The same way you do. We deliver your invoice and Authorization Letter to your client once services have been rendered or your product has been delivered. Take the CCF Test Drive to learn more.
CCF does not require a personal guaranty of collection. If your client's business goes bankrupt and payment is not remitted, CCF assumes the loss of funds that we advanced to you. If payment is not remitted due to a dispute with you, we will work with you to reclaim funds.
5 Things to Tell Your Clients
Selling invoices (receivables) to a third party like CCF has been a standard business practice for hundreds of years. Our business is not in trouble. In fact, it's just the opposite: it is growing fast and CCF accelerates my cash flow to fuel that growth.
By working with CCF, your payment terms can stay the same as they are today. You don't need to pay any faster and the name on the check stays the same.
I will continue to be the person with whom you discuss project related issues.
You will receive an original invoice and Authorization Letter with each invoice that involves CCF. Instead of mailing a check to our business, you simply redirect payment to CCF. CCF should be notified if payment terms or amounts are going to change.
Even though you will be sending payment to CCF, they are not a collection agency and they will not be calling you to collect payment.
Frequently asked questions
The main benefit of receivables factoring is the immediate increase in working capital which, among other things, can fund expansion and growth. Due to the fact that receivables factoring is contingent upon your customer's creditworthiness, it does not matter if your company's credit is poor or not yet established.
The same way you do. We deliver your invoice and Authorization Letter to your client once services have been rendered or your product has been delivered.
CCF does not require a personal guaranty of collection. If your client's business goes bankrupt and payment is not remitted, CCF assumes the loss of funds that we advanced to you.
By working with CCF, your payment terms can stay the same as they are today. You don't need to pay any faster and the name on the check stays the same.
CCF Representatives are experienced with a proactive policy that teaches you how to notify clients of your relationship with CCF.
A typical initial payment up to 80%-85% of the invoice amount is wired to your bank account. When your client pays your invoice, you will receive the remaining balance less our fees.
We collect personal information at your discretion so we can provide you with a better Web experience and an expedited process. The more we know about you, and the more complete the information you provide, the faster we can deliver. We never share your personal information with anyone.
Once your client has paid an invoice, you will see a settlement detail and the final amount due to you from CCF.
CCF Representatives are experienced with a proactive policy that teaches you how to notify clients of your relationship with CCF.