How A Strange Factoring Account Receivables Company Saved My Business

OCF FACTORING ACCOUNT RECEIVABLES COMPANY
- Providing factoring services nationwide
- Over 70 years of factoring company experience
- Up to 97% Advance Rates

Quick Continuous Cash Yes!
And You Also Get Our
Credit Risk Expertise
at No Additional Fee

Accurately assessing credit risk is really the essential
part of our factoring business. Few, if any, business clients
can perform this function as objectively as we will.

For no additional fee, we act as your credit
department for new and existing customers.
This provides you with a huge advantage over
in-house performance of these functions.

Consider the scenario where a salesperson has
a new account with a potential for large purchases.
The salesperson wants the business-so much so that
he or she may overlook red flags associated with credit
difficulties. The salesperson may even walk the
account through your own internal credit checking
procedures, in order to side step established controls.
While this may get you the sale, it won't get the money,
and with no money, there is no sale.

This will not happen with us. We make credit decisions
with full knowledge of the new customer's credit situation.
We will not buy the invoices of a poorly-rated customer
and risk nonpayment. But don't look upon our participation
as a tightening of credit to the extent that your business
will be affected in a way that is beyond your control.
If you have a new customer with questionable
creditworthiness, the decision to do business
with that person is still yours.

Factoring account receivables with us includes complete credit management services. We fully research new clients and, equally important, routinely check the credit ratings of your existing customers. As a part of the process you will also receive accounting, transactional details, aging reports and financial management reports which can be incorporated into your own sales tracking, account history and in-depth analysis.

Our experienced factoring acount receivables managers are seasoned professionals, each with an average of 11 years in the industry (well above the industry norm of 2 years). And unlike the others, you have one dedicated person and his or her assistant who handle your account. You don¹t have to start over with a new person each time you call. Our personalized service sets us apart from other factoring account receivables companies -- we always go the extra mile to make sure your financial needs are met.

Before you embark on using accounts receivable financing for your small business, consider the following questions:

Is the money needed necessary for your company survival, or moreover to take advantage of an opportunity?

How does this financing strategy match with your business plan? If you have no business plan, put together a plan prior to taking on additional money.

Is your business ready for more money and expansion financing?

Have you explored all possible sources of small business financing?

What are the current economic and industry conditions? Is now a favorable time to finance?

Taking the accounts receivable funding plunge can be the difference between company survival and bankruptcy. Carefully consider all your options. The factoring industry is not as regulated as banking. Spend the necessary time to investigate the companies you are working with. Inspect contracts and negotiate discount rates. In the end, using accounts receivable financing can buy time to eventually qualify for a regular credit line from your bank.

Is Account Receivable Factoring for You?

As a small business owner, you know first hand the struggle of attaining capital to finance the growth of your business or meet cash flow shortages. When regular small business financing such as loans and credit are limited, some business owners will turn to accounts receivable financing. Is accounts receivable financing right for your business?

What is Accounts Receivable Financing?

Accounts receivable financing is the selling of outstanding invoices or receivables at a discount to a finance or factoring company that assumes the risk on the receivables and provides quick cash to your business. The amount of value assigned to the account depends on the age of a receivable. A more current invoice will pay more. Any accounts receivable financing over 90 days typically are not financed. Accounts receivable financing is also known as accounts receivable factoring or accounts receivable funding.

Benefits of Accounts Receivable Financing

Pass off Collections: Outsourcing your accounts receivable management to another company, frees up your resources to focus on other more productive activities such as selling.

Free up Working Capital: Many companies have the majority of capital tied up in inventory. Accounts receivable funding allows a company to free up capital tied up in inventory.

Quick Financing: Accounts receivable factoring will not require a business plan or tax statements. It's a quick form of cash often used for businesses experiencing a cash crunch.

While these are some of the many benefits to factoring your accounts receivable, there are potential drawbacks to using this method to finance your small business. One of the biggest factors of accounts receivable financing is the cost. A 5% discount fee and other charges might not seem high this month, but over the course of a year the costs can greatly exceed the interest on bank credit or a loan. Rates will vary among companies shop for the best deal and contract.

We realize that financing the growth of your business can be a challenge. Newly developed or established businesses selling on credit terms will eventually need more working capital due to growth. If your credit sales to commercial accounts have created a cash flow shortage in your business, then your company will benefit the most by using our accounts receivable financing service. Business owners realize that there is no need to borrow money from a bank in order to offer credit financing terms to customers

Businesses that sell on credit terms have a hidden asset that most owners do not realize can be used for collateral. 1st Commercial Credit specializes in collateralizing and financing accounts receivable. The receivables are pledged as collateral and the business may draw cash against the eligible accounts receivable at any time. Accounts receivable financing, also known as factoring is not a loan, so there is no need to make payments or create debt to your business.

freight factoring
account receivable factoring
invoice factoring

Interesting Word Relationships

financing -- (obtain or provide money for; "Can we finance the addition to our home?")

=> pay -- (give money, usually in exchange for goods or services; "I paid four dollars for this sandwich"; "Pay the waitress, please")

Sense 2

financing -- (sell or provide on credit)

=> credit -- (accounting: enter as credit; "We credit your account with $100")

financing, funding -- (the act of financing)

-> financing -- (the commercial activity of providing funds and capital)

=> corporate financing -- (the financial activities of corporation)

=> financing, funding -- (the act of financing)

=> high finance -- (large and complex financial transactions (often used with the implication that those individuals or institutions who engage in them are unethical))

=> investing, investment -- (the act of investing; laying out money or capital in an enterprise with the expectation of profit)

=> flotation, floatation -- (financing a commercial enterprise by bond or stock shares)

=> banking financing-- (transacting business with a bank; depositing or withdrawing funds or requesting a loan etc.)