Receivables Funding (or Invoice Factoring)

Whatever your business, cash flow is the key to your success.

Shore Financing can get your business cash it needs now for your outstanding invoices.

Invoice Factoring is a very simple process.

When you factor your invoices, you will receive most of the invoice value (70-80%) immediately.  When a customer finally pays their invoice, you get the remainder of the invoice amount, minus a small factor fee (3-6%) that is based on the time it took for the invoice to be paid. The factor fee schedule is established up front in an agreement between you and the factor, then your monthly factoring process is as simple as sending a copy of each invoice to the factor as well as your customer.

What are the benefits of factoring?

• It stimulates cash flow.

• There are no stipulations about how to use the money.

• It does not create debt on your balance sheet.

• It increases your purchasing power, enabling you to do more business.

• Eliminates the need for bank loans or SBA Loans.

• Improves your credit rating, and gives you cash to meet your obligations.

• Eliminates using equipment, real estate or inventory for collateral.

• Saves on your in-house staff costs.

• Presents a professional image to your clients.

• Eliminates the need for venture capitalists or partners that share in decision-making and profits.

• Receive credit reports at reasonable rates.

In many situations, factoring is more appropriate than bank financing, because factoring:

• Is based only on the accounts receivable.  A client’s ability to raise cash by factoring is based on the total outstanding receivables, rather than on traditional measures of financial strength and stability.

• Provides continuing cash flow without the requirement of periodic payments or interim payoffs.  New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.

• Gives a business increased access to cash as sales and receivables increase.  There is no ceiling beyond which the factor must stop providing cash.  The more sales a business makes, the more cash it can draw.  The factor does not concentrate on the business debt/equity ratio to provide funds, as banks do.

• Offers a dependable, continuing source of cash without the necessity of making separate loan applications.

• Avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business is run.

• Allows you great flexibility.  Factor all of your receivables or only the ones you choose.  Stop factoring any time you choose without termination penalties and start again any time you need the service.

• Saves the business owner precious time waiting for a loan board to grant or deny his or her loan.  Loan boards’ decisions are influenced by many considerations, and the outcome is often unpredictable.  With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best – run the business.

  But most of all... It's YOUR money!  Put it to work for you NOW?