Factoring is an opportunity for a company to convert all or portion
of their accounts receivable (often a sizeable asset on their balance
sheets) to cash by selling invoices from their credit-worthy customers
to factor.
Factoring is not a loan. There is no debt repayment, no compromise
to your balance sheet, no long-term agreements or delays associated
with other methods of raising capital. Factoring allows you to use
your own hard earned assets to create cash for the growth needs of
your company.
What we can provide you
The following
benefits can be realized when administered by a professional factoring
company as part of an overall accounts receivable management program:
Stabilized cash
flow can allow you to manage your business, cover overhead expenses
including payroll, negotiate more favorable terms with your vendors
or have capital to pursue new contracts
Costs of factoring can be rolled into costs of contract
No need to offer discounts to customers for early payment, as funds
from factoring cover the discount given to customers
Our Accounts Receivable Management program will take away the time
consuming job of collecting your receivables and allow you to concentrate
on managing your business and growth opportunities
Your clients will often pay the factor faster than they pay you.
We are on-line with the major credit reporting agencies and consequently,
are often able to collect within the initial terms granted to your
customers
No need to give up equity
No additional liabilities appear on your balance sheet. Factoring
does not impair your ability to obtain additional financing. In fact,
by demonstrating a predictable cash flow, you may be better able to
secure needed financing from traditional sources
No restrictive
net worth or financial ratio covenants often associated with bank
lending, especially given the current credit issues and the difficulties
in obtaining traditional loans.
No fees associated with bank financing apply to factoring
You will not incur any closing, commitment or unused line-of-credit
fees
No long term contracts
Stabilized cash flow
can allow you to manage your business, cover overhead expenses including
payroll, negotiate more favorable terms with your vendors or have capital
to pursue new contracts • Read more
As
a factoring broker, Seville Financial Group will ensure you get the
best representation and service as we represent your firm to our factoring
clients.
After an initial phone conversation, we will forward the due diligence
materials requested in the application and materials checklist to
our factor. Due diligence will consist of a review of these materials
and other investigations as deemed necessary.
After receipt of the invoices you would like to factor, our factoring
clients verify the invoices with your customers and contract officers
and notify them of our assignment of the invoice upon acceptance and
approval of the sale of your invoice(s).
Our factoring client will then wire into your account the advance
amount, upwards of up to 90% of the face value of the invoice. The
factor will withhold the agreed upon retention.
When the invoice is paid, our factoring client will subtract the
fee from the retained amount and forward the balance to you.
Our
application requires the use of Adobe Acrobat. If you currently do
not have Adobe installed on your system, please use this link to download
Adobe to continue with the application process.
• Download
Adobe
For your convenience, the documents you will need to complete the
application process have been compiled into an easy to follow checklist.
• Download
Checklist
Once your application is completed, please fax or email all documents back
to us. We appreciate the opportunity to serve your business needs and look
forward to financing your future.
• Download
Application
P 202.716.0122 |