What is Invoice Factoring?

There are many ways to maintain a positive cash flow when growing your business and dealing with accounts receivable issues. One popular way to increase cash flow is factoring. Factoring (also known as Accounts Receivable Financing) is the practice of selling your accounts receivable (invoices) at a discount to another company. You get the money from the company that you sold your accounts receivable to and they become responsible for collecting on the invoices.

The reason many businesses make this move is to ensure the continuous flow of cash to the business. Essentially, businesses who use factoring are focusing on having most of the money now rather than all of it later. It can take time to collect on an invoice, so when a company finances its accounts receivable, they are getting their money faster and without the hassle of the collection process.

With small businesses, it is even more important to free up working capital through factoring. The money can be invested into new equipment, used to pay bills, or used toward payroll. Of course, the alternative is to chase the customer for the invoice payment and defer everything else while the money is tied up in the collection process.

In order to fully understand factoring, you should be familiar with the service: You may consider the following ideas so that you may have a better understanding of factoring. It could be best option for your business.
 

How Much Does It Cost?

As we all know, factoring is not free, but when used properly, it can more than pay for itself. The idea is to have cash in hand rather than chasing the full amount of the invoice.

Typical fees are a few percent of the invoice amount depending on several factors such as the volume of factored invoices & how long your customers take to pay.  Some of our fees are as low as 1.5%.  Regardless, when you use a Charter Capital FactorLine to grow your business, your bottom line should increase because the additional profitable business you are now able to add and should more than offset the factoring costs.

How Do You Know Charter Capital is the Right Factoring Company for You?

If you are a small business to mid-sized business owner who has made the decision to factor your invoices as a way to keep cash flow going, you need a factoring company like Charter Capital. A Charter Capital FactorLine provides your company with the experienced professionals you need.

A Charter Capital FactorLine Is Your Simple Cash Flow Solution.
At Charter Capital, the process is very simple. Your first step is to contact us. Give us a call or fill out our online application. This process should take you just a couple minutes and we will be able to contact you with pricing in less than 24 hours. Once we have set you up with a Charter Capital FactorLine, obtaining cash for your accounts receivable in less than 24 hours is simple and easy.
 

• You provide your service or product to your customers as you always have.
• You continue to bill your customers as you always have.
• You submit your invoices that you want to factor to Charter Capital along with our simple factor form.
• We wire your funds directly into your bank account. Typically, in less than 24 hours.
• We wait for your customer to pay us directly. When we receive payment, we notify you on the same day.
• You continue to grow your business, free from the worry of your cash-flow.

Benefits of a Charter Capital FactorLine
A Charter Capital FactorLine is your key to growing your business. With a Charter Capital FactorLine, you are free from many of the restrictions placed upon your business by traditional financing. Most importantly, with a Charter Capital FactorLine, you are free to grow without having to give up equity or control of your business.

A Charter Capital FactorLine will allow you to grow your business. No longer will you be afraid to turn down a customer because you cannot grant them payment terms. No longer will you have to turn down business because your customer isn't going to pay you for 30, 60, or 90 days, but you have to pay your employees on Friday. No longer will you have to wait for your customer to pay before ordering more material that you need for the next job. Most importantly, with a Charter Capital FactorLine, you can spend your time growing your business instead of worrying about cash flow.

A Charter Capital FactorLine will allow you to increase your bottom line profits.

A Charter Capital FactorLine is a powerful tool to improve your financial position. When you use your Charter Capital FactorLine to grow your business, your bottom line should increase because the additional profitable business you are now able to add should more than offset the factoring costs. In many business your net margins increase too. Since you have already paid for fixed costs, like rent, office staff, etc, the additional sales that you are able to make are your most profitable ones.

A Charter Capital FactorLine will help you manage your customer accounts. Charter Capital can provide you with valuable information that can help you determine if a new customer is a higher credit risk or not. Charter Capital can also assist you in managing your customer accounts. That being said, we know that every business is different. Upon applying for a FactorLine, we will listen to your needs as it involves the collection process and we can customize a program just for your company depending on your particular needs for our involvement. Many of our clients prefer to continue participating in the collection process in the interest of preserving continuity with their customer relationships. As a financial incentive, the Client is rebated a part of the discount fee based upon a schedule of declining days outstanding. Other clients prefer that we become more involved and handle the collections process for them. Either way, your customer will be treated with the same respect and courtesy that you would personally give them.

Call or contact Charter Capital today.

Call us toll free at (877) 960-1818 or email us today to find out how easy it is to set up a Charter Capital FactorLine. One of our account representatives will be happy to visit with you about setting up your FactorLine.