FACTORING & ACCOUNT
RECEIVABLE
FINANCING
ACCOUNT RECEIVABLE FACTORING
Invoice factoring is one of the most accessible forms of business financing. Accessible cash flow solutions without the hassles of getting a loan from a bank. Approvals within Hours!
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If your business is unable to obtain bank financing but generates quality accounts receivables, our receivable funding services can be an ideal temporary solution to solve your day-to-day working capital needs. Delivered promptly, professionally and most important confidentially.
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Accessing factoring services simply requires a business to be providing goods or services to other creditworthy businesses on terms.
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When you are seeking account receivables factoring, you are basically getting cash advances against the face values of your outstanding invoices. The only deduction that comes out of your money is the fee charged by the factoring company. The rest of the money is deposited directly into your bank account, and much of it is deposited within a few hours of approving the invoice.
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Diamond Ethical helps you secure creative rates to ensure growth for your business with quick pay and improved cash flow.
TELL US MORE ABOUT YOUR BUSINESS FINANCIAL NEEDS
Please take a few seconds to fill out this form so we can give you customized information for your financial needs and how quickly you can be funded.
Regardless of your current financial condition, personal credit history, or time in business, you can quickly and easily access your money/funds tied up in unpaid invoices within 24 hours without the usual red tape associated with bank financing. Factoring companies give a growing business tremendous advantages over traditional bank loans, private investors or friends and family.
WHAT IS ACCOUNT RECEIVABLE FACTORING?
Accounts receivable factoring (aka receivable funding) is a commonly used form of funding where a business sells its outstanding receivables to a factoring company to obtain immediate working capital.
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The great thing about receivable factoring is that there is no need for you to have great credit. No matter how bad things seem to be going for your company, as long as you have outstanding receivables with creditworthy clients, then you have the cash flow you need to do business. The really important decisions in an accounts receivables factoring transaction are based on the credit strength of your client base.
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Why wait on your customers? You can get the cash you need today and then let the factoring company manage the receivables process. If your customers take more than 30 days to pay their invoices, factoring could be the right solution for you. Contact Imperial Hope Financial today to get your accounts receivable factoring rates using trucking credit to secure trucking finance, factoring freight; and learn how we can help you overcome your cash flow challenges.
ADVANTAGES AND DISADVANTAGES OF INVOICE FACTORING
PRO
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Minimal credit history requirements
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Cash flow without debt
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Low qualification requirements and simple application process
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Operational support to A/R department
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Your business can give terms to your customers without worries
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Quick cash flow boost for your business
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High approval rates
CONS
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Not a solution for delinquent receivables
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Requires ceding some control of customer interactions regarding A/R
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Liability for non-creditworthy customers (in most cases)
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Not accessible to B2C companies (businesses that sell only to consumers)
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More expensive than traditional bank financing
INVOICE FACTORING: HOW IT WORKS
Invoice factoring (aka accounts receivable factoring) is a financial transaction whereby a business sells its outstanding invoices to a factoring company at a discounted price. Businesses that sell to other businesses (or the government) use factoring to access immediate cash flow.
THE PROCESS OF INVOICE FACTORING
The invoice factoring process consists of four (4) main components:
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Your business
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Your business clients (debtors)
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One or more accounts receivable (invoices)
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A factoring company (the factor)
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Invoice factoring is a simple seven (7) process:
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Step 1: Your business delivers a product or service to another business and issues an invoice date in 30 to 90 days.
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Step 2: Your business sets up an account with a factoring company.
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Step 3: You sell your invoices to the factor.
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Step 4: Once the invoice is approved, the factor provides a cash advance based on an agreed advance rate.
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Step 5: The debtor pays the invoice.
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Step 6: The payment is deposited into a temporary reserve account.
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Step 7: The factor wires the funds received minus factoring fees and the amount initially advanced to your bank account.
Industries that regularly use factoring as financing source (but not limited to) these industry are:
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Telecommunications
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Construction
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Manufacturers
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Apparel Stores
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Staffing
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Aerospace
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Farmers
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The Government
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Commercial Services
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Distributors
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Transportation