Accounts Receivables Factoring
($5,000 - $10,000,000)
Accounts Receivables Factoring is an ideal solution for companies that are growing quickly, have seasonal work, or need extra cash flow to purchase inventory, make payroll or invest in marketing. You are able to create an immediate influx of cash based on your invoices.
- + Can fund up to 90% of your invoices; international or domestic.
- + E-Z Approval Process Never Based on your Personal or Business Credit Scores Guaranteed.
- + No Personal Guarantee & No Collateral Required, 100% Unsecured Funds
For a 24hr-approval
Rates 0.59% - 1.5% for 30 days
The process is simple:
- • A company delivers its goods or provides its services to clients and issues an invoice
- • Said company then sells its invoice to a factoring company (Neebo Capital) and in exchange the company is given up to 90% of the invoice’s amount in cash within 24 hours
- • Once the predetermined net terms of 30 to 60 days has passed, the invoice is paid by the end-customer to the factoring company and the remainder of the money from the sale of the invoice is remitted back to the company who sold it, minus a small fee for the financial service that was provided
Account Receivable Financing Frequent Questions
Accounts receivable funding is a widely used financial solution for all types of businesses that extend credit terms to their customers. Here are some common questions our customers ask.
How is accounts receivable funding different than a loan from a bank?
When making an accounts receivable funding decision, we will focus on the creditworthiness of your customers while banks will focus on your company’s financial history and cash flow. Accounts receivable funding is not a loan, therefore provides you with less debt on your company’s balance sheet. we can make a quick funding decision, while banks may take weeks—even months—to approve a loan.
Will my company be eligible for accounts receivable funding if it has a bank loan or line of credit?
If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien. Some banks will accommodate the request and others may decline depending on your circumstances. Our number one referrals come from loan officers willing to help out the client in cash flow needs. They are very familiar with this kind of interim financing. The other alternative is to pay off the loan if there is plenty of receivables to leverage the buy out.
Which customers would be good candidates for accounts receivable funding?
Usually 80% of your business comes from 20% of your customers and these would be the most likely to factor, however, we will factor 100% of your customer base so long as they are credit worthy. In order to approve your customer base, we will need their names, addresses, phone numbers and the amounts of credit desired for each client. This will save you time when submitting invoices to us.
Can you purchase only a portion of my company’s invoices or one customer?
Yes, unlike other factoring companies we welcome small accounts because when you grow we grow tohether.
How long does it take to receive the first funding?
Depending how quickly we receive your application completed, The initial funding takes between 3-10 business days after we receive your signed agreement. If you wish, you can send some invoices to be funded with the signed contract in order to expedite your funding. After the initial funding, your company can receive funds within 24 hours after invoice verification.
How much of my company’s accounts receivable can be funded?
We can fund up to 100 percent of your company’s creditworthy accounts receivable and depending on the industry, we may fund up to 92% advance.
What should I tell my customer when they find out I am financing my receivables?
Should an account debtor (customer of our client) who is unfamiliar with factoring question the notice of assignment and ask what is going on, the business owner only needs to tell them they have chosen to use a company to manage and finance their accounts receivable.
Quick Link to Financial Resources:
|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company