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Explanation of Services:


HOW DO I QUALIFY?


  • Your company generates at least $50,000 per month in accounts receivable with creditworthy customers. 
  • Your business is providing product or services to other businesses. Factoring does not work with general consumer receivables. 
  • You’ve been declined by a bank or the bank simply does not lend sufficient funds needed for the continued growth of your young or rapidly growing business. 

HOW DOES FACTORING WORK?

The Factoring Process is simple and quick: Payment in cash, to the client (usually within 24 hours), comes not from the customer, but from CAPCO Financial by purchasing the receivables on a continuing basis. Upon delivery of the goods or services, invoices are generated by the client, and CAPCO Financial purchases those invoices and advances the cash.  Factoring is the only financing mechanism directly linked to a company’s sales

FOR EXAMPLE:  A company sells its accounts receivables (i.e., their invoices) to a Factor.  Upon purchase from Factor, the company receives up to 80% of the invoice(s) face value, immediately recouping it’s cost-of-goods-sold and often, part of its profit, without waiting until the invoices are paid 30, 60 or more days later.  When the Factor receives payment for invoices as the debtors settle their accounts, the company then receives the remaining 20% less the Factor’s fees. 


Without acquiring any new debt, factoring enables a business to convert invoices to cash on hand, fund growth and expansion, respond to seasonal demand and opportunities, meet payroll and other current expenses, as well as a myriad of other options available because of this increase in working capital.

THE BENEFITS OF FACTORING:

  • Factoring can be customized and managed so that it provides necessary capital when your company needs it.
  • A No-Debt Solution - The financing does not show up on your balance sheet as debt.
  • Factoring is based on the quality of your customers’ credit, not your own credit or business history.
  • Factoring provides a line of credit based on sales, not your company’s net worth. 
  • NO Limit - Unlike a conventional loan, factoring has no limit to the amount of financing. 
  • The only limits on funds available are your own sales!



You get the cash you need now to:


  • Meet current expenses including payroll.
  • Purchase additional inventory to increase sales volume and profits.
  • Fund expansion and growth.
  • Take advantage of early payment discounts offered by your suppliers.
  • Make your balance sheet more attractive and strengthen your financial position.
  • Grow if you are a young company that lacks the financial track record required by traditional lenders.
  • Take advantage of new sales and profit opportunities when your business is doing well, but you need more cash flow.
  • Resolve income, credit or tax problems your business is experiencing.
  • Run your company, when you have operating losses or have already filed for bankruptcy protection.
  • Fill orders or provide services when your business is growing rapidly and you need capital, but have too much money tied up in accounts receivable.
  • Increase your current volume of business without incurring any debt or increasing overhead.
  • Greatly reduce your accounting, invoicing and collection costs.
  • Respond immediately to seasonal demands and opportunities.
  • Regulate the cash flow of your business.