What IS Accounts Receivable Financing/Factoring?
- A cash flow tool that allows you to use your accounts receivable as an asset to ensure the growth of your business, without diluting your existing equity or incurring additional debt.
- An effective way to turn your accounts receivable into immediate cash which you can use any way you wish.
How is this beneficial to my business?
- The funds can be used for almost any business expense such as increasing inventories, capital expenditures, taking advantage of supplier discounts, hiring additional staff, and expanding facilities.
- Accounts receivable financing frees your staff from onerous billing, collection, and administration chores while eliminating costly mailing fees.
- FVF can take over the backroom operations for your credit and collections departments.
- Funds secured through a reliable factor (such as FVF ) will enable you to ensure your business achieves the growth it needs to flourish.
Who needs factoring?
- Undercapitalized or new companies
- Growth oriented companies
- Companies that cannot get adequate bank financing
- Companies with tax problems, liens, or working through a bankruptcy
- Companies with low or negative net worth
What are the advantages of factoring with First Vancouver Finance over borrowing?
- When you borrow…
- Typically a lender will secure collateral equal to a minimum of three times the loan amount
- Your flexibility is restricted
- You cannot secure additional funds without renegotiating the loan
- You must meet monthly payment obligations
- You incur additional debt further leveraging your business
When you factor…
- You don’t borrow money
- There are no monthly payments
- Mailing expenses and costs associated with follow-up management on accounts are eliminated
What factoring does…
- Improves cash position
- Increases purchasing power
- Works to improve your credit rating
- Makes it possible to increase production and sales
- Provides professional credit checking on your customers
- Provides complete accounts receivable portfolio management
What will my customers think?
For some people this question is their most important issue. Generally most finance companies will want the customers (or debtors) to remit directly to them. In today’s environment, where factoring is more widely known, this seldom causes a problem. However, well managed finance companies like FVF will typically have a Non-Notification program available for those situations where it is warranted. Either way, factoring clients should take the time to inform their customers that a change with remittance will be taking place and that it is planned. Good business people know the value of open account terms and the importance of maintaining and enhancing terms. Factoring can help to ensure that everyone is paid on time. If clients, customers, and suppliers all cooperate, everybody benefits.
What sets FVF above other factoring companies?
- FVF purchases your approved commercial accounts receivable once the goods are shipped or services are completed
- FVF handles invoices, mailing, processing, and postage at no additional cost
- We provide timely aging reports so you know the status of all your accounts, including on-line reporting
- We provide up-to-date account information, customer balances, and detail reports via the web, as well as the ability to monitor delinquent accounts 24/7
- We offer professional accounts receivable management and collection services on your factored account
What kind of industries can use FVF ?
Any business engaged in creating business to business accounts receivable needing cash flow financing of $25,000 to $2,000,000.
How can FVF work for me? We provide…
- The most competitive rates available
- Financial strength and stability
- US offices coast-to-coast, in Canada and Worldwide
- Individualized service that is professional and unparalleled
- Over 32 years experience serving small to medium sized businesses
- Numerous programs and flexibility to meet the specific needs of individual companies
- Funding from $25,000 to $2,000,000 per month
- Web access to your accounting records to provide real time reporting
Are my invoices liened as collateral?
Yes, they are. FVF requires first position on invoices you have submitted to our accounts receivable financing program. In some instances FVF may elect to work with a bank or SBA lender who is also financing the end client. In these cases, the bank must be willing to subordinate its position on the accounts receivables