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| Q: How will factoring my invoices affect my customers and my image with them? |
| A. Any business that generates invoices and delivers a verifiable product or service to another business or government qualifies. While Factoring can also help problem businesses, it is primarily an attractive source of financing for new, small, midsize, or rapidly growing businesses. Factoring allows businesses to improve their cash flow and speed up their growth by shortening their receivable cycle. |
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| Q: Does my business qualify despite bad credit or no credit history? |
| A. Yes. That's the unique beauty of Factoring! You don't need an outstanding credit history to qualify for factoring your invoices. Your qualification depends on your customers' creditworthiness and their ability to pay, not yours. As part of our services, we do the research to assess your customers' creditworthiness for you. |
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| Q: Can my business qualify, if I already
have existing credit lines, SBA loans, owe back taxes, or have already filed bankruptcy? |
| A. Yes. Elite Business Funding can offer specific programs that can complement any loan you may have or are seeking. However, it is important for us to know the exact details in advance. We will then work with your existing lenders or creditors so we can make Factoring available to you. |
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| Q: Do I have to factor a minimum
volume of future receivables? |
| A. Absolutely not! Elite Business Funding programs are flexible and do not require you to enter long-term restrictive contracts or to meet minimum monthly requirements. Our programs are specifically designed to allow you to use Factoring only as you see fit. You can choose to Factor all or some of your invoices one month, and none the next. You can stop or continue as needed. |
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| Q: How much does it cost to use your Factoring services? |
| A. Costs are surprisingly low (in fact much lower than giving your customers a 10% price discount for whatever reason!). Your actual costs are limited to a nominal fee which is calculated as a small percentage of the invoice amount. This percentage is based on several criteria including the credit history of your customers, the volume of invoices, the sizes of invoices, and the factoring program you choose. But no matter what the circumstances are, utilized in the proper way, Factoring is the most cost efficient fund solution for your business because it furnishes a continuous cash flow without the requirement of periodic payments or interim pay-offs. Remember, Factoring is not a loan and therefore does not involve paying back principal and interest! |
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| Q: How long is it beneficial for me to use your Factoring services? |
| This depends on your current situation and the speed of your future success. Experience suggests that many clients profit from Factoring for a period of about two years before successfully moving to other forms of financing. As a true business partner, we are determined to accelerate your success and to improve your cash flow as quickly as possible through Factoring until your business no longer benefits from it. Remember, a better cash flow should generate more sales, a better bottom line, better balance sheets, and help you establish an outstanding credit history. Once you have achieved your short term business objectives and profitable growth, we will of course be happy to continue working with you and assist you with other forms of financing, such as venture capital, asset based lending (ABL), etc. |
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| Q: How will factoring my invoices affect my customers and my image with them? |
| A. Factoring will allow you to extend better and more flexible payment terms to your customers and thus make it easier for them to buy from you without adversely affecting your business and cash flow. Your image? What would you think of your suppliers if they had access to unlimited cash or a credit line of, say, a million dollars? |
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