Every business needs working capital some of the largest companies in the USA use invoice factoring companies to solve their financial needs. When you use a factoring company to finance your account receivables, you are making the commitment to bring your business to the next level. Knowing that you will get paid on your invoices rapidly, will allow you to offer credit to new clients. Account receivable financing will allow you to increase your inventory, grow your business and give you peace of mind knowing you have the capital to pay your staff and it will allow you to even pay yourself. When a business chooses to factor invoices with an invoice factoring company, you now have the freedom to offer longer credit terms as you will always be paid within 24 hours of the verification process. Offering credit to new clients also presents some challenges, as determining creditworthiness is uncertain and extending long credit terms to strap any business's cash flow.īusinesses turn to commercial factoring companies to solve working capital issues. Some businesses, due to the time frame on when they are paid on their receivables, are concerned about offering longer credit terms to existing clients, which can be resulting in lost opportunities. Spot factoring is when you have a one-time invoice that you are looking to sell standard invoice financing/factoring is when you sell us multiple invoices from multiple clients on a daily, weekly or monthly basis. We can buy our other financing companies but we will need to be in the first lien position before we can fund your account.Īlliance One LLC is not spot factor, we are in it for the long haul, we are your financial partner. If there all asset liens/UCC filings, we will need to have those filings terminated before we can fund you. Your company cannot have any all-asset liens/UCC Filings. At this time we cannot factor for Sole Proprietors. You also need to have a company that is open and in good standing for us to factor for you. Most businesses factor invoices that are Net 30 days or longer. If you have certain clients that are paying you in 15 days, after you invoice, you might not want to factor these invoices. All other payments from your customers on invoices that we did not purchase, will be wired back to your account and you will not be charged any factoring fees. You will only be charged a factoring fee on the invoices that you sell us. If you decided to sell us invoices from customer XYZ, INC, then all payments from XYZ INC, need to be paid directly to Alliance One, even if you choose not to sell us all of their invoices. You get to pick the customers that you want to factor and you decided which invoices you want to sell to us. Alliance One LLC is your financial partner, we are here to help you grow your business for the long term. It is not required to factor all of your clients with us but we do require a minimum of two debtors in order to factor with us. What are the Requirements to Factor my invoices? Once your client (our debtor) pays the invoice, we will release the reserve money that we are holding back to you. Alliance One LLC is not a collection company, we do not call your clients demanding payments, we are simply your financial partner. Do you own my invoices?Īll invoices purchased from the invoice factoring company (Alliance One LLC), become an asset of the factoring company. Once the verification of the invoice is completed, the funds are released on that invoice within 24 hours. An account representative will verify that the products have been delivered or that the services have been rendered. Once a business sells an invoice or it's receivables to Alliance One LLC, a verification process must take place before the funds are advanced to the business. The factoring company (Alliance One LLC) collects the full amount from the customer in due course and pays the balance amount due to the business owner after deducting the discount fee for the services rendered. The factoring company (Alliance One LLC) will advance up to 90% (the other 10% is held in a reserve account) of the face value of the face invoice amount. The business owner sells their account receivables in the form of an invoice to the factoring company (Alliance One LLC). It’s when you sell some or all of your accounts receivables to a factoring company at a discount rate for immediate cash. Invoice factoring is a financial transaction that is available to companies that are business to business.
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