Who uses factoring?
Factoring works for small to large corporate client’s of Cameron Capital Consulting by generating “Continuous Cash Flow” from invoices for goods or services to other businesses, institutions, or government agencies. This includes all types of B to B manufacturing, Staffing and Technology companies specifically. Retail Installments are also provided for high end Jeweler businesses. If you are a business owner, accounts receivable funding frees you from the lengthy and burdensome process of invoice collection. Resulting in the opportunity to collect the money owed to you by your customers immediately. Factoring dates all the way back to the Mesopotamian & Roman empires and is frequently utilized these days throughout Europe and in the U.S. by Fortune 500 companies.
What's wrong with my current arrangement?
Absolutely nothing -- if your customers pay their invoices as soon as they receive them. Time is money and the longer it takes you to receive payment for your goods or services, the less that invoice is worth-- which places you in the unfortunate role of loan officer to your customers at 0% interest. And because your working capital is tied up in unpaid invoices, your own expenses may go unpaid-- placing your own credit standing at risk. CFO’s know the fundamentals behind how to “Grow with Cash Flow.”
How would I benefit from factoring?
Factoring allows several distinct advantages. First of all, by receiving your money for the invoices you submit within 24 to 48 hours, you would be able to pay your day-to-day expenses --payroll, utilities, supplies and rent-- for starters . Also, you could lower your supply costs by taking advantage of cash, volume, or term discounts. How would the enhancement of cash on hand add to your negotiating prowess going forward?
What other benefits are there?
With additional working capital, you could purchase new equipment to increase production; or you might choose to launch new marketing campaigns or products to increase sales and grow your business. With improved cash flow, you have the freedom to utilize your working capital where it can work for you best. Bottom line, statistically co.’s growth increase between 40-60% within the first 3 quarters of implementation.
How can I profit if I have to sell my invoices at a discount?
If you were to analyze the cost of waiting for your invoice payments today, chances are it is costing you at least that much-- and you still have to wait for your money. But with cash in hand to negotiate better terms with your suppliers, increase production, and take your business to the next level, those savings often far outweigh the funding source’s discount. Another significant benefit is that the funding source will assume responsibility for the collection process, communicate on a regular basis, and provide you with a weekly aging report of the factored receivables.
Who exactly are these funding sources?
They are professional and private investment firms who rather than risk their capital in unpredictable marketplace returns on investment, seek more stable and secure investments with pre-established yields. These firms conduct business with Cameron Capital Consulting and you in a fair, ethical, & confidential manner --but they also compete for your business through Cameron Capital Consulting -allowing you, the business owner, to receive the best rates possible.
How does all this differ from a bank loan?
Banks undoubtedly play a critical role as the financial backbone for many businesses. However, in today’s entrepreneurial marketplace, there is an increasingly growing number of businesses finding it difficult to obtain bank financing-- if only because their receivables are outpacing their growing sales. Here is where banks & funding sources take divergent paths…
- Banks provide loans at an established interest rate; whereas funding sources purchase invoices at an established discount rate.
- Banks loans create additional debt for your business; funding sources pay you cash for your invoices revenue.
- Unlike banks, factoring attaches no liens on your assets -- so it does not impact your existing credit line with your bank.
- While banks focus primarily on your debt/equity ratio, funding sources focus primarily on the creditworthiness of your customers.
- While bank loans can often take weeks to be approved & acquire, funding sources pay you within 24 to 48 hours of invoice submission.
- Banks determine your loan potential based on your financial assets; whereas funding sources base the funding amount on your invoices.
- Whereas banks (as lenders) are strictly regulated, funding sources are not and can therefore offer greater flexibility to accommodate you.
How do I convey my choice to upgrade operations?
Although many businesses position this as a simple “change in billing” to their customers, many others position the new billing procedure as a business growth strategy in order to better serve their customers. Your business will qualify for this enhancement if your customer's creditworthiness is solid. So be proud to install the same sort of financing Fortune 500 s utilize.
If factoring is so good, why aren't more businesses doing it?
Actually, more US businesses are doing it, and are realizing that the benefits of accounts receivable funding far outweigh the more conventional methods in helping them manage their cash flow. When you hear about your competition bidding on a job at a price that exceeded your cost of production, chances are your competition is utilizing factoring-- giving them a competitive edge.
How long does it take to get started?
Once you have completed a client profile and provided an accounts receivable aging report, the funding source must perform due diligence on the accounts you have listed. Once that is complete (generally five to ten days), the funding source will submit a contract for your approval, outlining the entire terms of agreement. As soon as the agreement is signed & returned, funding is available immediately thereafter within 48 hrs.
Once I sign the agreement, how long am I committed?
Although funding sources vary on lengths of agreements, they are sensitive to the fact that we all conduct our business in an ever changing business climate, and attempt to provide you with as much flexibility as possible. These terms, too, will be clearly stated in the agreement. Funding sources will generally go to great lengths to earn your trust, satisfaction, and long term business. However, if a situation develops Cameron Capital Consulting would be committed in seeking an alternative funding source for you.
How can Cameron Capital Consulting enhance my business?
We have access to billions of dollars through our nationwide network of well over a hundred of the industry’s leading funding sources. It is through this network that allows Cameron Capital Consulting to obtain the the greatest value, and the widest service offerings to meet your specific business needs.
How do I get started?
By E-mailing Us Today At : JPC@CameronCapitalConsulting.com for a free and confidential meeting and Cash Flow Proposal. We look forward to receiving your brief note today. Please include two available times we can choose from, we will confirm one and call you then.
Click here to download your Factoring Worksheet. Please print it out, begin filling out and Fax (949) 387-7604 in the meantime or during our conversation as we can walk you through the easy process.
