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                         GET THE FACTS

Shopping for the right financing program for your company can be a challenge. Each Finance Company operates differently, therefore fees and services may vary considerably. The following information has been developed as a guideline to help you in the decision making process. Take a moment to carefully read this information. Whether you ultimately decide to utilize our services or the services of another Finance Company, please be sure you have answers to the following questions before you sign any letter of commitment or Security Agreement. We hope this makes the challenge of shopping for the best possible finance program easier.

• Covenants
  Are there specific financial requirements your company must meet in order to maintain this line of credit? If your company does not meet one or all of these requirements, will funding cease immediately?
  
  
• Length of Contract
  How long is the contract you will be signing? In the event you wish to terminate early, are there stiff termination penalties? Be sure to consider the risk of getting into a long-term contract with a company you have never done business with before. If a factoring company has confidence in their organization they should be willing to shorten the term of your contract to give you an opportunity to familiarize yourself with their business practices.
  
  
• Flexibility
  Are you required to sell all of your invoices or can you select the accounts yourself? How much control of your business do you keep?
  
  
• Funding Policies
  How long will the factor need to process and fund your invoices? How will these funds be transferred to you? Are there any charges associated with a wire transfer? Will your bank charge you when they receive the wire transfer?
  
  
• Advance Rate
  This number can vary anywhere between 75%-95%. Be sure your advance provides you with enough cash to operate your business.
  
  
• Fees
  Make sure you understand exactly what you will be paying for the factoring line. Are there any ambiguous references with respect to fees you do not clearly understand? Are you obligated to pay fees to the factoring company monthly even if you do not utilize their services? Does the factor have different rate structures? For example, will your rate double when a payment is received by the factor on day 16 instead of day 15? Get any necessary clarifications in writing.
  
  
• Credit Checking and Analysis
  Will the factoring company run credit reports for new or existing customers? If credit agencies have limited information, are they willing to call on credit references themselves to help accommodate you? Are you charged any additional fees for this service?
  
  
• Credit Approval
  How does the factoring company determine which customers of yours they will accept? Are your customers required to have a Dun and Bradstreet rating in order to be approved? Be sure to confirm they will accept the customers you want to factor at the volume you need in order to operate your business.
  
  
• Collection
  Who is responsible for handling calls on delinquent accounts? Are you charged additional fees for these services such as long distance telephone charges, faxes sent on your behalf, etc.?
  
  
• Lock Box
  Sometimes a lock box system is used for payment processing. Your customers' checks are mailed to a special post office box-referred to as a lock box-where they are immediately deposited into the factoring company's bank account. When will you receive credit for these payments? Often there is a two or three day "float" or delay.
  
  
• Float Days
  Some factors will deposit your customers' checks and wait to give you credit for these monies for an additional two to four days. While they are collecting interest at the bank on these funds, your fees are still accumulating if you are not on a flat rate.
  
  
• Miscellaneous Fees
  Here are a few examples of some fees which may be hidden somewhere within your contract.

  
  

  • Audit Fees: Your contract may require an annual audit to ensure the financial stability of your company. The cost of this audit is most likely your responsibility.
  • Invoice Fees : You may be charged an additional fee for every invoice you submit for funding. If you are charged invoice fees be sure to calculate your costs.
  • Report Fees: Sometimes there will be a charge for report information on your own account.
  • Filing Fees: Some companies pass along all charges they incur with respect to perfecting their security interest with the Secretary of State.
  
  
• Service and Experience
  Does the factor offer value added services to the funding they provide? Do you have to pay for any of these services? Will there be personalized attention to your account whenever you need it, or do you always have to leave a message in someone's voicemail? What is the depth of the factor's knowledge and experience in your industry?Line of Credit
  What is your maximum line of credit and will it be sufficient? In the event you experience an unexpected growth spurt and require additional funding, how long can you expect it to take to increase your line? Will it have to go to a loan committee where your request can sit for several weeks or months?
  
  

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Into Cash in 3 Easy Steps

-1-  Contact Us
                 -2-  Send Us Your Invoice       
     -3-  Take Your Cash

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or complete the
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