CoveyHeadquarters.COM factoring companies
Factoring Companies in New York, New York
What is factoring ?
Receivable financing, also known as factoring is a method used by businesses to convert sales on credit terms for immediate cash flow. Financing accounts receivable has become the preferred financial tool in obtaining flexible working capital for businesses of all sizes. The receivable credit line is determined by the financial strength of the customer (Buyer), not the client (The seller of the receivables).
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Advance / Reserve.
This type of factoring is by far the most widely practiced. Upon taking title to invoices, the factor company immediately pays to the client a percentage of their total face value. This payment (called the advance typically falls between 70% and 85%, but may go as low as 50% or less (for example, in the case of construction or third - party medical invoices), or as high as 90%. After successful collection of payment from the account debtors, the receivable financing subsequently remits the balance of the invoice amount (s) (usually called the reserve ) to the client, minus the factor earned fees.
There service provides the factor company with available funds from which to draw its fees, and furnishes a buffer against defaults by clients and / or account debtors.
Some factors do not hold back a reserve balance, but rather advance the entire invoice face value, less maximum factoringfees, at the time of purchase. This practice is not widespread, however, since most factors of this type prefer to retain the protection that reserves offer.
Advance / reserve factors generally structure their fees as an initial discount rate (typically ranging between 1. 5% and 5% of invoice face value), followed by subsequent increases scheduled over the length of the actual collection period.
The collection period begins on the day that the factor advances funds to the client (which is not always the same as the invoice date), and is normally divided into windows or time bands of equal duration. Windows most typically occur in 15 - day increments, although 7 -, 10 - or 30 - day increments are not unheard of. The
normally increases by one or two percentage points at each new window.
Accounts Receivable Financing Company in New York, New York helping in their first years of business, as well as companies that are having tremendous growth and need more cash. New York, New York factoring
CoveyHeadquarters.COM is a Factoring Company that Provides a wide range financial services
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CoveyHeadquarters.COM Provides Factoring Company Services to all states:
Factoring Companies in New York, New York
Unlike other Factoring Companies, CoveyHeadquarters.COM makes receivable financing easy to obtain with minimal paperwork.
LTL | Brokerage | Warehousing | Livestock | Household Goods | Heavy Haul | Van | Tanker | Refrigerated | Parcel | | Marine | Flatbed
Subhaulers - A subhauler is an owner - operator of a single tractor or may have a fleet of tractors which are leased to prime carriers. A subhauler with a fleet of vehicles may be liable for employment taxes on the drivers of thosevehicles. Income earned is a percentage of the freight bill prepared by the prime carrier.
Porthaulers - An owner - operator whose primary route is to pick up freight from the harbor and to transport the full, sealed container to the terminal of the prime carrier or break - bulk agent. Porthaulers are usually paid a flat rate for each container hauled.
Freight Broker | Freight Forwarder | Shipper's Agent | The shipper's agent is a bonafide agent of the shipper who performs the shipper's transportation function. The shipper's agent arranges for and routes the transportation of goods from one point to another. Other duties may include the settlement of claims and payment of the carrier s freight invoices. Ultimate paymentof freight bills, however, is the responsibility of the shipper.
Freight forwarders usually specialize in the type of freight transported and the type of transportation carriers used. This provides them with expertise in handling the paperwork involved with certain types of transactions.
factoring is typically used by trucking companies.
Oilfield Services That Use factoring companies in New York, New York:
Oilfield Trucking Services factoring companies in New York, New York:
CoveyHeadquarters.COM Provides Factoring to all industries:
"Your 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., President- security services company
New York, New York Factoring Companies
factoring vs. Bank Loans
So,why not simply go over to the friendly banker for a loan to alleviate cash flow problems ? A loan can be difficult if not impossible to receive, especially for a young, high - growth operation, because bankers are not expected to decrease lending restrictions soon. The relationships between businesses and their bankers are not as strong or as dependable as they used to be. More Info.
The impact of a loan is much different than that of the factoring process on a business. A loan places a debt on your business balance sheet, which costs you interest. By contrast, factoring puts money in the bank without the creation of any obligation. Frequently, the factoring discount will be less than the current loan interest rate.
Loans are largely dependent on the borrower financial soundness, whereas factoring is more interested in the soundness of the client customers and not the client business itself. This is a real plus for new businesses without established track records.
There are many situations where factoring can help a business meet its cash flow needs. It provides a continuing source of operating capital without incurring debt, which can result in growth opportunities that dramatically increase the bottom line. Virtually any
business can benefit from factoring as part of its overall operating philosophy.
Every good businessperson must understand the concept and benefits of factoring in
order to operate as profitably as possible. The following chart can help you understand the differences between factoring and other sources of funding
companies that use factoring companies
factoring is typically used by consumer product companies. That is, companies that sell
products that ultimately end up in retail stores. Industries in which factoring is commonly used include:
- Sporting goods
- Pet supplies
- Personal electronics
- Home furnishings
- Hardware items
- Handbags, luggage,leather goods
- Eyewear and accessories
- Consumer electronic and accessories
- Carpet and rug
factoring is typically used by staffing companies.
Professional Staffing Accounts Receivable Financing Company
Why Factoring is Necessary