HOW DO I QUALIFY?
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:
You get the cash you need now to:
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