Springfield Factoring | Springfield A/R Finance
We know it sometimes seems like an eternity waiting on payments from your customers. With factoring the waiting is over. Now you can get the money you’re owed within 24 hours.
Our services may also free up employees from some of the billing tasks so that your business can move forward.
With hundreds of factoring companies out there many business owners are overwhelmed with various rate structures, contract terms and fees.
A good factoring partner can not only provide an avenue for growth but also simplicity in fees, a bad factoring partner can put a company out of business.
With Factoring a small business can obtain working capital without incurring debt.
Capital is obtained through the value of the receivables on your books.
Your payable invoices become a cash in the bank.
Fast Simple and Affordable way to improve your cash flow with little effort.
If you suffer from sales fluctuations, payables or taxes being due from you faster than your receivables are paid, you may benefit from this powerful financial tool.
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There are numerous variations of factoring, accounts receivable finance & invoice discounting.
Many factoring articles & blogs explain factoring. Those written by factoring companies are generally more accurate in that they explain how factoring works in their particular factoring company.
Some variations are due to difference in industry. A healthcare factoring company may work very differently from a factoring company that deals with factoring trucking or staffing companies.
Construction Factoring Companies are different yet.
Some use primarily recourse factoring where a few offer non-recourse and confidential factoring.
That's where we come in. We work with factors all over the world in nearly every industry.
Our database of factoring companies is unmatched and here to benefit you.
You pay nothing for our service. Only when you choose to work with one of our contacts and the transactions take place will we receive a fee for our services. Paid by the factoring company.
TYPES OF FACTORING
Disclosed factoring is the most common type of factoring and is offered by all the invoice finance companies in the UK. There is a disclosure notice on the invoices that states that the invoice is assigned to the factoring company.
Confidential factoring offers the benefits of factoring in that it releases cash against your invoices and the factoring company will collect debts on your behalf. However, your customers will not be aware of any involvement from factoring company. This means that when the factoring company call up your customers they use your company name. As such the facility is a confidential factoring facility.
Recourse factoring refers to the fact that you as the client take the risk of your customers non-payment. The factoring company will fund the invoice for a certain period of time, for example 60 days past due date. However, when the invoice remains unpaid after this period it will be re-assigned to you as the client and funding for that invoice will be withdrawn.
Non-recourse factoring means that invoices
within agreed credit limits for agreed customers will be funded
without recourse to you as a client. Some larger lenders will have
their own credit protection policies whereas independent factoring
companies will typically use a third party insurer. It is important
to know under what circumstances the policy will pay. Not all
lenders offer non recourse facilities but as an alternative a
separate credit insurance facility can be sourced.
In either case credit protection for non-recourse factoring is
only exercised when the customer is unable to pay i.e. bankruptcy.
In either case credit protection for non-recourse factoring is only exercised when the customer is unable to pay i.e. bankruptcy.
A CHOCS facility is a disclosed factoring facility but you as the client takes control of the credit management function. It is often considered a hybrid between factoring and invoice discounting. CHOC's stands for Client Handles Own Collections. Not all lenders can offer such a facility.
SINGLE DEBTOR FACTORING
If your business only has one customer this will be deemed by factoring companies as have a 100% concentration. It is important to find a factoring company that will not impose a concentration limit on your factoring facility.