Invoice Factoring – Factoring Receivables To Improve Cash Flow

Invoice Factoring, also known as accounts receivable factoring, is a hot topic in today’s tightened economy – in the Dallas-Fort Worth Metroplex, throughout Texas and nationwide.

Take advantage of Bentwood flexibility by putting factoring to good use for you... and your company!  The financial strains of today's business owners sometimes roll over into their personal lives. If stress about money — or the lack of it — is keeping you on the edge of your seat, it's time to get a grip.

Believe us, we’ve been there. You may be waiting for an overdue check from a big client, or maybe had a catastrophe that caused you to close shop for a few days, while missing potential customers. Whatever your dilemma, don’t wait until you fall behind before seeking help from Bentwood Financial Group. Late payments to your creditors could lead to the demise of your business, so rather than taking any chances you should call us to get caught up.  Even if your bank says 'NO', ask us.  We can help.

Factoring has no bearing in its capacity to provide working capital for business growth and / or expansion. The beauty of factoring is that it:

• Converts accounts receivable into immediate cash for the seller
• Does not fall under the category of lending but rather that of purchasing invoices to enhance cash flow
• Can be a great way for you to get paid quicker – no need to wait 30-90 days to get paid
• Is one of the few sources of financing available to those businesses operating under a Chapter 11 bankruptcy filing (reorganization)
• Offers quick funds to meet payroll, purchase materials/supplies or pay quarterly taxes

What is Factoring?

Factoring is a simple process. Basically, it involves the actual purchase of a company's accounts receivable at a discount for immediate cash. Many "first stage" companies weigh a variety of alternative options because they don’t have way of cracking into the funds of traditional bank financing. When you know the money is coming in, but you’re not sure when, it can be a tremendous strain on your overall well-being.

It'’s time to explore the benefits of commercial factoring for your business. With the slow economy and the competition to survive ever-fierce, factoring allows your business an alternative solution to improve cash flow, credit rating and discounts.

Just because you don’t meet certain criteria for the bank doesn’t mean your business doesn’t deserve some type of financing. Bentwood has access to some of the LARGEST finance companies, who have helped thousands of business owners with billions of dollars from factoring. By the way, in case you’re wondering, factoring in the United States is approximately a $150 billion dollar industry.

Many are in the manufacturing, distribution, and service industries that are a ‘start-up’ and may not qualify for traditional financing or established companies that have exhausted their ‘line of credit’ with their bank. If you fall within these categories, factoring is worth looking into. Our strategic partnerships are helping businesses grow, prosper and stay alive during an uncertain era. You can break it or make it, why not choose the latter?

• What goes into Factoring?
  Factors purchase invoices that are unencumbered from creditworthy customers. In other words, the factor has to ensure that a bank or someone else does not have a "lien" against the invoices.
• Who is who in factoring?
  Simply put, the client is the one "selling" the invoice and the "customer" is the one that owes the money for the service or the product that they received.
• How do I know if I qualify for factoring?
  
  

  If your company invoices your customers you qualify for factoring your accounts receivables.

• What's next?
  After we determine you're a great candidate (which is highly likely!), Bentwood will then request an Accounts Receivable Aging Report, along with a list of customers.

In The Know:

• A minimum of $5,000 worth of your business invoices are required for a Factor to be issued.
• You are not required to sell all of your invoices, only those you request to sell.
• There are some Factors that do "spot factor"; which means that invoices are purchased every now and then.
• Once Bentwood determines that a client is a good candidate for factoring – we will need:

• An Accounts Receivable Aging Report
• Client List

The Cash-Flow Doctor solves cash-flow challenges for businesses in the Dallas-Fort WorthMetroplex, throughout Texas and nationwide. No one does it better or more hassle-free. Call The Cash-Flow Doctor NOW.