Ozarks Capital Funding

People that aren’t familiar with accounts receivable factoring may be confused when a factoring company advertises that they offer advance rates up to 85% (or whatever they advance on submitted invoices).   Those that don’t know the industry may think that the 85% is all they’re going to get.   The fact is, the intial payment is just the immediate advance, as set forth in the contract.  The remaining amount (invoice total less advance) is called the reserve.  The reserve is remitted back to the client when the bill is actually paid by the customer, less the factoring fee.

When I rolled out our first youtube video,  I wanted to get as much input as possible from not only factoring experts, but also laymen who didn’t know the product.  Some of the people not familiar with invoice factoring thought the 85% was all they were going to get and wondered how their business could survive by discounting their invoices that much.

If your customers pay their bills in 30 days, you’ll receive anywhere from 96% to 97.5% of the invoices you’ve submitted for factoring.  Some of the fees can be offset by taking advantage of early payment discounts from your suppliers since you’ll have immediate working capital from the advances.   You’ll also have the ability to stabilize your cash flow.

Shore up your working capital by getting a free factoring quote today!

Check out our new e-book, “Accelerate Your Cash Flow With Invoice Factoring”.  Click here.