Accounts Receivables Factoring!

If your business is waiting 60-120 days for payment from your customer invoices, factoring (selling your business receivables) can be the solution to your cash flow challenges! Let 1st Trust Factoring help your company find an optimum solution to your cash flow needs and help you understand the real benefits of factoring.

Nancy Anderson
Cash Flow Consultant

1st Trust Factoring represents several factoring companies and can find the optimum funds provider for the size and needs of your business.

Why not simply go to the local bank and ask for a loan? First of all, the application and approval process is long and involved. Secondly, the loan approval depends on the business's financial situation, which may not be very good if payments from customers have been long in coming. Thirdly, there is a limit of how much financing can be obtained from a bank. Finally, the loan ties up the assets of the business and shows up as debt on the balance sheet.

Cash flow factoring (selling the company receivables) is NOT a loan. It is a much simpler, shorter, and financially beneficial process. In fact, factoring can actually IMPROVE your balance sheet!

Factoring Benefits:

Factoring receivables gives businesses, with little-to-no or tarnished credit history, access to a virtually "unlimited" amount of cash.
Evaluation of financial strength is for your business customers, not your own company.
Factoring services provide working capital without adding debt to your balance sheet or giving up equity in your company.
There is no predetermined maximum limit of funds which can be factored.
No collateral is required other than the accounts receivables themselves.
There are decreased reimbursement intervals between the time service is provided and payment is received.
Businesses can take advantage of early payment discounts and volume discounts.
Invoice factoring is quick to set up - usually around 10 days to set up an account for initial funding and subsequent fundings happen approximately within 1-7 days of submitting the invoices.
The more business factoring produces, the more money is made available through this "expandable line of credit."
Business factoring is very accessible.
Receivable factoring can improve your balance sheet overall.

Most Businesses can Qualify for Factoring (an Accounts Receivable Credit Line) if the Business:

Sells to credit worthy businesses.
Sells to commercial accounts.
Has not pledged their accounts receivable as collateral.

Many of our Clients are:

Companies that simply need cash for a special purpose or for daily operations.
Start-up companies with no financing base upon which to rely.
Companies with uneven or seasonal sales patterns.
Fast expanding companies whose past sales histories and earnings won't support the increased borrowing required to acquire needed supplies and raw materials.
Organizations with credit problems that cannot obtain traditional financing.

What Is the Process Once Approved?

Send your claims to the factoring company
The factoring company advances from 70-90% of your expected net collections usually within 1-7 days
10-30% is not advanced and is used as a reserve to handle possible charge backs
When the reserve claims are paid, the reserves are returned to the business

Call us today at
800-897-1339

Start your factoring account now at
Preliminary Factoring Application