A Breakthrough Factoring Company
Offering Factoring Programs
Tailored
to Make You More Money
Factoring
History
Welcome to factoring. Whether you own a business,
look forward to
building one or are looking for new financial
tools for your current
employer, Factoring can help you reach your financial goals.
Factoring
has the ironic distinction of being the financial backbone of many of America's
most successful businesess. Why ironic? Because factoring is not taught in
business
colleges, seldom mentioned in business plans and is relatively
unknown to the majority of American business people,
yet it is a financial
process that frees up billions of dollars
every year, enabling thousands of
businesses to grow and prosper.
Factoring is the process of purchasing
commercial accounts receivable(invoices) from a business at a discount. Business
practices today dictate that in order to get business you, as a provider of
goods and services, must extend terms to your customers.
These terms can
squeeze the life(and cash is the lifeblood of any business) out of a new or
struggling company.
Factoring has a long and rich tradition, dating back
4,000 years to the days of Hammurabi. Hammurabi was the king of Mesopotamia,
which gets credit as the "cradle of civilization." In addition to many other
things, the Mesopotamians first developed writing, put structure into business
code and government regulation, and came up with the concept of
factoring.
After a while, Hammurabi and the Mesopotamians went the way of
extinct civilizations, but factoring endured. Almost every civilization that
valued commerce has practiced some form of factoring, including the Romans who
were the first to sell actual promissory note at a discount.
The first
widespread, documented use of factoring occurred in the American colonies before
the revolution. During this time, cotton, furs and timber were shipped from the
colonies. Merchant bankers in London and other parts of Europe advanced funds to
the colonists for these raw materials, before they reached the continent. This
enabled the colonists to continue to harvest their new land, free from the
burden of waiting to be paid by their European customers.
Recognize that
these were not banking relationships as they exist today. If the colonists had
been forced to use modern banking services in eighteenth century England, the
process would have been much slower. The banks would have waited to collect from
the European buyers of the raw materials before paying the seller of these
goods, the colonists. (And at that point, who needed the bank?) This was not
practical for anyone involved. So, just as today, the "factors" of colonial
times made advances against the accounts receivable of clients, enabling the
clients to continue with their operations, long before they had been paid for
what they were sold.
With the advent of the Industrial Revolution,
factoring became more focused on the issue of credit, although the basic premise
remained the same. By assisting clients in determining the creditworthiness of
their customers and setting credit limits, factors could actually guarantee
payment for approved customers.
This is known as factoring without
recourse(or non-recourse factoring)and is quite common in business
today.
Prior to the 1930's, factoring in this country occurred primarily
in the textile and garment industries, as the industries were direct descendants
of the colonial economy that used factoring so specifically. after the war
years, factors saw the potential to bring factoring to other forms of
invoice-based business and the expansion began.
Today, factors exist in
all shapes and sizes: as divisions of large financial institutions or, inlarger
numbers, as individually owned and operated entreprenurial
endeavors.
Many of these private factors sprung up in record numbers as
interest rates rose to new heights in the 60's and 70's. This trend intensified
in the 80's, primarily due to the increasing impact of interest rates and
changes in the banking industry. With banks becoming too expensive and too
inflexible due to heavy regulation(remember the Savings and Loan crisis?), the
small businessperson was forced to find other sources of financing for expansion
and growth. As more and more banks stop befriending the small bussinesperson,
factoring is becoming an increasingy popular option.
This year alone
thousands of businesses will sell billions of dollars in accounts receivable,
and they are doing it for profit, growth, and in some cases , their very
survival.
GET YOUR CASH
TODAY
Call
our factoring specialists at
On-line
Factoring Request Form
We Can Offer You What Others Can't
Unlike other factoring companies, our program includes the following features at no additional charge:
• Continuous collection management and follow up on factored invoices
• Invoice and statement mailing (postage included)
• Account status inquiries anytime;
24/7 online account access.
• We allow you to electronically submit Invoices
• Free credit checking on new customers
• 12-24 hour funding on approved invoices
• Highest advance rates in the industry
• Credit analysis on new and existing customers
Also
• We are seasoned professionals with an average of 11
years industry experience per account executive
(Well above the factoring industry norm)
• Personalized Service - you have one dedicated person
and his or her assistant who handle your account.
You don't have to start over each time you call
with a new person
Up to 97% Advance Rates:
Advance rates are based on overall risk associated with a particular industry as well as experience and track record. We hold reserve accounts to accommodate industries which typically experience dilution and that we would otherwise not be able to service. Advance rates range from 80% to 97% of the gross invoice amount.
Our flexibility allows you to maintain control:
• You select accounts you prefer to factor on an invoice by invoice basis.
• You control total factoring costs by only factoring on an "as needed" basis.
Fee Structures:
Fees are determined based on your industry, the credit worthiness of your customers, how quickly your invoices turn, and monthly factoring volume.
GET YOUR CASH TODAY
Call our factoring specialists at
On-Line Factoring Request Form
Are We Crazy?
Use No Other
Factoring Company
Until You Have Seen
Our Enterprising Plans, including unique
97% Advance Rates
GET YOUR CASH TODAY
Call our factoring specialists at
On-line Factoring Request Form
"Vital Force Factoring has always provided service above and beyond any other company I have dealt with. Our account manager gives us 100% and this is only ONE of the reasons we have chosen to stay with them."
-L.P., Vice President security services company
Hear What Our
Customers Say About Us
"In all my years of finance experience I have
found you as being the best source, their personal touch and
commitment to us has made our relationship a great blend of business and
friendship."
-Omar , Controller for Utilities Company
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Quick Continuous Cash Yes! And You Also
Get Our
Credit Risk Expertise
at No Additional Fee
Accurately assessing credit risk is really the essential
part of our factoring business. Few, if any, business clients
can
perform this function as objectively as we will.
For no additional fee,
we act as your credit department for new and existing customers.
This
provides you with a huge advantage
Why Factoring is Necessary
"A sale is not a sale until
you collect the money"
Are you a part -time banker
for your customers?
Take a look at your accounts receivable aging....
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Is Factoring For You?
The key to knowing if factoring is for you
is to not to look only at the bottom-line factoring fee, but also
to consider how your company may increase it's profits through
factoring.
Factoring Benefits
Receive money in as few
days as two to four days.
Maintain complete control
of your business.
Remove or lessen the business costs
associated with the collection process.
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