Do you have customers that take 30, 40 or 60 days to pay their invoices? Although slow-paying customers are expected in today’s business environment, they make it very difficult to manage cash flow. Paying suppliers, salaries and rent becomes a challenge.
However, there is a way to solve this problem. The solution involves factoring your invoices with First Community Financial.
Factoring is a financing tool that allows you to get your invoices paid immediately upon delivery of your goods or service to your customer. It provides your company with the necessary capital to operate the business, pay suppliers and grow. However, factoring is not a business loan. Rather, factoring involves selling your invoices at a discount for immediate cash. We wait to get paid, while you get immediate use of the funds.
- You deliver goods or services and invoice for them.
- You deliver the invoice to First Community along with any proof of delivery or back up documentation. We then immediately advance up to 80% of the invoice amount directly into your bank account. This is called the advance.
- You get immediate funds to run your business – pay vendors, meet payroll, hire new employees.
- Once the customer pays First Community, you get the amount paid less the advance and the factoring fee.
Factoring can help your business if it has any or all of these characteristics:
- Minimal capitalization.
- Lack of credit and collection expertise.
- Limited operating history.
Advantages of factoring with First Community:
- Prompt approval and funding.
- No minimums.
- No long term contracts.
- Flexible assignment of accounts and invoices.
- Transition into more traditional revolving lines of credit under our asset-based lending program.
First Community may provide factoring services to companies with monthly financing needs from $50,000 to $1,000,000.