Ozarks Capital Funding

When a business decides to take advantage of invoice factoring,  they must realize that their customers will be made aware of the relationship.  The factoring company, the client, and the client’s customers are the three legal participants involved in the transaction.

Clients may have a problem with this because of the irrational stereotype that still exists about factoring.  Some clients worry that if their customers find out they are using accounts receivable factoring, they will be viewed as being in financial trouble.  These clients need to understand that factoring is an accepted form of financing and it is used to acquire working capital by many companies, large and small.  Chaos in the credit markets have stifled bank loans for businesses.  As a result, factoring volume has skyrocketed in recent months.

Customers of invoice factoring clients will be notified at the onset of the relationship because the amounts they owe from submitted invoices have been used for the cash advances.  They will be asked to make payments directly to the factoring company.  This is a critical part of the factoring relationship.  If the customer mistakenly pays the client, the payment must immediately be remitted to the factoring company.

Could your company benefit from an infusion of working capital?  Click here to apply or call us at (417) 849-7394