Free Factoring Quote.Affordable and Factoring Advances up to 97%

Account Receivable Funding. Unlike the Others We Help You Make Money

Free Factoring Quote

An Affordable Factoring Company
Providing Factoring Services
for Businesses Nationwide

Over 60 years of experience. We fund with our own money, not investor money.
This allows us to be more flexible with our factoring programs.

We provide factoring for manufacturing, staffing,
apparel, transportation, service companies and more.

Our factoring programs allow you to meet your payroll and quickly add new customers.
We take away your cash flow headaches; you get your cash now and we will wait for your customers to pay.
We can fund start-up firms also.

For more information on how our factoring company
can help you then please click here
Affordable and Flexible Factoring Company

Please Click Here for Your Free Factoring Quote.

or Call Fred Coutts for your factoring quote
at 206-281-3153 or 1-888-942-6639
Fax # 206-378-1070
Email Fred@FredCoutts.com
Web: www.FredCoutts.com

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. Please review Your Benefits and Comparison of Factoring to Traditional Methods links.

Here is additional information on factoring to help you with your decision.

How are fees and advance rates determined?
It is based on several factors:
The creditworthiness of your clients
Your monthly billing volume
Average invoice size
Average days to payment
Fees can range from 2-5 % of the invoice's face value. For example if the invoice's value is $1,000; a fee of 3% equals $30.

What is an advance?
The amount of money you receive immediately when we buy your invoice. The balance is returned to you when your customer pays the invoice.
Advances range from 60-95% of the invoice's face value. For example if the invoice's value is $1,000 an advance rate of 80% equals $800. The balance of $200 less the factoring fee is returned to you when your customer pays the invoice.

Comparing Bank Lending Rates to Factoring?
When compared to bank lending rates, factoring initially appears to be very expensive. Here are five typical questions/concerns that are raised by potential factoring clients

Wow! 3 points per month! That's 36 percent year!
It is tempting to annualize the numbers, but that is an "apples and oranges" comparison.Banks loan money at an annualized interest rate, 12 percent per year for example. We purchase your receivables at a discount. The products are different and there are other inconsistencies to this inappropriate comparison

The bank provides the money only one time, the day that you receive the loan; we provide money continuously. As an example, consider a bank loan for $100,000 at 12 percent. You receive the $100,000 just one time and then pay $1,000 interest per month interest and you still owe the $100,000. Or the bank could provide you with a line of credit that you use only when you need the money but the bank is charging you for that privilege and if you need to increase your line you need to go through the qualifying process all over again.

When you factor $100,000 each month for a year you have the use of $1.2 million (12 x $100,000) over the year. Unlike a bank loan where you have just $100,000 one time. Assuming a 3 point discount, the fees over the year will be 12 x $3,000 or $36,000, which is still 3 percent of $1.2 million. And at the end of the year you have no debt!

I'm only making 3% profit, how can I pay you 3 points?
A company making only 3% net profit can do more business volume as a result of factoring, and the larger volume will result in a higher profit margin because fixed costs do not increase with volume. The added business at a higher marginal profit leads to an increased overall profit margin. As the volume increases, the cost of production decreases, so that profits increase. Fixed costs i.e., rent, electric, insurance, etc., increase very little or not at all with volume. An increase in business will not affect rent. Electric bills may rise slightly. Workers compensation insurance may rise slightly. These costs do not increase as do direct production costs.

Let's graphically do the math assuming you can double your sales
Without Factoring

Monthly Gross Sales	$50,000
Cost of Goods Sold	$30,000	60% of Gross Sales
Monthly Gross Profit	$20,000	40% of Gross Sales
Fixed Expenses	$10,000
Variable Expenses	$8,500	17% of Gross sales
Factoring Fee	N/A
Total Expenses	$18,500	37% of Gross Sales
Monthly Net Profit	$1,500	3% of Gross Sales

With Factoring

Monthly Gross Sales	$100,000
Cost of Goods Sold	$60,000	60% of Gross Sales
Monthly Gross Profit	$40,000	40% of Gross Sales
Fixed Expenses	$10,000
Variable Expenses	$17,000	17% of Gross Sales
Factoring Fee	$3,000	3% Fee
Total Expenses	$30,000	30% of Gross Sales
Monthly Net Profit	$10,000	10% of Gross Sales

But I only get 80% of my money upfront!
Let's assume an advance rate of 80%. Let's also assume that you begin factoring in January. You have factored $100,000, we pay you $80,000 of that money upfront, with the remaining money making up the fee (3%) of $3,000 and the reserve (17%) of $17,000.
Now in February, you once again factor $100,000 and receive $80,000. However. you also receive your January reserve of $17,000(assuming your customer pay in 30 days). So for February, you actually receive 97% of your money, instead of 80%.
In the second month and going forward you are basically receiving 97% of your cash flow.
But what if my customers take longer than 30 days to pay?
You have several options, Assume your client takes 60 days to pay you bill your client in the normal fashion and simply allow 30 days to go by prior to factoring that invoice. That way you pay the 30 day fee.
Another way is to factor your faster customers first for the cash you need.

Please complete our form so that we can help you determine your options.
Click here for the Easy Information On-Line Factoring Quote Form
or
Call or email me now for your FREE no obligation analysis of your cash flow needs.