OUR PROVEN FACTORING ACCOUNTS RECEIVABLES PROGRAMS
HELP BOOST YOUR CASH PROFITS

Contact our factoring specialists at:

Toll Free:  888-266-0197

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What It Takes To Switch  Factoring Companies


YOU GET FLEXIBILITY
THAT NO ONE ELSE OFFERS

We offer tailored processing systems

You can choose to use the latest in technology- based  processing systems
or the old-fashioned paper-based ones
or a combination.

Unlike the others
we don't force you into a box

We will tailor our financing programs to help you make more cash.

Unlike the others 
you get to choose
what works best for you.

We can do this because we have the knowledge,experience,
systems, and
one-of-a-kind financing that is unique in the factoring industry.

OCF FACTORING COMPANY
 - Providing factoring services nationwide
 - Over 70 years of factoring company experience
 - Up to 97% Advance Rates

WHAT SETS US APART 
• Same Day funding on approved invoices
• We do not require a long term contract.
• 97% advance rates; tops in the industry
• Credit analysis on new and existing customers
• Continuous collection management and
   follow up on factored invoices
• Invoice and statement mailing (postage included)
• Account status inquiries anytime;
  24/7 online account access.

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.

Up to 97%  Finance Receivables 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.

Fee Structures:
Fees are determined based on your industry,
the credit worthiness of your customers,
how quickly your invoices turn, and
monthly factoring volume.

OCF provides individualized customer service,
by tailoring our flexible programs to fit the individual
needs of each of our clients. We strive to
be responsive, handling receivables
with speed, efficiency, and a personal touch.

As a client you are assigned one account
administrator who will personally handle
all of your account activity and inquiries.
This gives us the ability to buy your
receivables and get the money to
you within 12 to 24 hours.

Having one person look after your account
also makes it easy for you to decide
which invoices you are going to sell and
when you want to sell those invoices.

Our factoring funding is primarily done by
direct deposit or wire.

OCF has more than 70 years of successful
cash flow and credit management experience,
experience we would love to put to work for you.

To talk with a member of our sales team,
please contact one of our regional offices at:

Toll Free:  888-266-0197

Fax #:  425-702-1874

On-Line Factoring
Request Form

Factoring Home Page
Why Factoring is Necessary
Factoring Benefits
Factoring History
Factoring Comparison
Credit Risk Management
Is Factoring For You
How Factoring Works

Interesting Financing Word Relationships
 financing, funding -- (the act of financing)

    -> financing -- (the commercial activity of providing funds and capital)

       => corporate finance -- (the financial activities of corporation)

       => financing, funding -- (the act of financing)

       => high finance -- (large and complex financial transactions (often used with the implication that those individuals or institutions who engage in them are unethical))

       => investing, investment -- (the act of investing; laying out money or capital in an enterprise with the expectation of profit)

       => flotation, floatation -- (financing a commercial enterprise by bond or stock shares)

       => banking -- (transacting business with a bank; depositing or withdrawing funds or requesting a loan etc.)

More Factoring Financing  Information

IS FACTORING RIGHT FOR YOUR BUSINESS?

Although commercial factoring financing has been used for over 200 years, it is especially useful in today's uncertain economic environment. Factoring involves the purchase of the accounts receivable of an operating business by a third party (the 'Factor"). The Factor provides credit analysis and the mechanical activities involved in collecting the receivables. Factoring financing is a flexible financial tool providing timely funds, efficient record keeping, and effective management of the collection process. 

Businesses factor their accounts receivable for many reasons, but most frequently to gain greater CONTROL over those receivables. While most aspects of a business's performance, i.e. inventory control, labor costs, overhead, and production schedules can be determined by its management, when and how the business is paid is usually controlled by its customers (the"Account Debtors").

Factoring financing provides a means for turning your receivables into IMMEDIATE cash! Other benefits of factoring include:  Protection Against Bad Debts - Unfortunately, a careless or overly optimistic approach to the extension of credit by a business owner who is sales oriented by nature, and who follows the axiom " no business grows by turning customers away", can lead to financial disaster. A Factoring financing company provides you with an experienced, professional approach to credit decisions and collection operations by examining each Account Debtor's credit standing and determiningcredit worthiness from a credit manager's point of view. Stronger Cash Flow - The financing afforded by a Factor to its client is based on sales volume rather than on conventional credit considerations. Usually, the amount of credit obtainable is higher than the amount offered by a bank or other lender. This feature provides you with additional financial leverage.

So, why wouldn't a business just go over to their friendly banker for a loan to help them through their cash flow problems?, "Getting a loan can be difficult if not impossible, especially for 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.", "The impact of a loan is much different than that of the factoring process on a business," he said. " A loan places a debt on your business balance sheet, costing you interest. By contrasts, factoring financing puts money in the bank without creating any obligation and frequently the factoring discount will be less than the current loan interest rate. Loans are largely dependent on the borrower's financial soundness, whereas factoring is more interested in the soundness of the client's customers and not the client's business itself. This is a real plus for new businesses without established track records."

There are many situations where factoring can help business meet its cash flow needs. By providing a continuing source of operating capital without incurring debt, factoring can provide growth opportunities that can dramatically increase the bottom line. Virtually any business can benefit from factoring as part of its overall operating philosophy.

Cash flow is one of the main reasons businesses fail. At one time or another, every business, even successful ones, have experienced poor cash flow. Cash flow does not have to be a problem any more. Do not be fooled -- banks are not the only places you can get funding. Other solutions are available and you do not have to borrow.

What is Factoring?

One solution is called factoring. Factoring is the process of selling accounts receivable to an investor rather than waiting to collect the money from the customer.

Factoring Principals

Although factoring deals exclusively with business-to-business transactions, a large percentage of the retail business uses a factoring principal. MasterCard, Visa, and American Express all use a form of factoring in their retail transactions. Using the purest definition of the word, these large consumer finance companies are really just large factors of consumer paper.

Think about it: You make a purchase at Sears and charge it to your MasterCard. The store gets paid almost immediately, even though you do not make payment until you are ready. For this service, the credit card company charges Sears a fee (typical fees range from two to four percent of the sale).

The Benefits

Factoring can offer many benefits to cash-hungry companies. Rather than wait 30, 60, 90 days or longer for payment on a product or service that has already been delivered, a business can factor (sell) its receivables for cash at a small discount off the amount of the invoice.

Payroll, marketing efforts, and working capital are just a few of the business needs that can be met with this instant cash.

Factoring provides the means for a manufacturer to replenish inventory and make more products to sell: There is no longer a need to wait for earlier sales to be paid. Factoring is not just a cash management tool for manufacturers: Almost any type of business can benefit from factoring.

Generally, a business that extends credit will have 10 to 20 percent of its annual sales tied up in accounts receivable at any given time. Think for a moment about how much money is tied up in 60 days’ worth of invoices: You cannot pay the power bill or this week's payroll with a customer's invoice, but you can sell that invoice for the cash to meet those obligations.

Factoring is a fast and easy process. The factor buys the invoice at a discount, usually a few percentage points less than the face value of the invoice.


 More Factoring Financing Information