factoring account receivables

OCF FACTORING COMPANY
 - Providing factoring services nationwide
 - Over 70 years of factoring account receivables 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%  Factoring Account 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 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

Email Us

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

Our  Factoring Account Receivables Programs Can
Help You DOUBLE YOUR
SALES

Contact a member of
our sales team at:

Toll Free:  888-266-0197

On-Line Factoring
Account Receivables Request Form

Email Us

Please visit our Factoring Account Receivables website










Factoring Articles
 

Factoring Account Receivables-
Provides Alternative Source of Working Capital

Whether you are a machinist operating out of a garage
or a staffing company placing hundreds of workers in the largest firms,
you undoubtedly face cash flow dilemmas from time to time. 
  The uncomfortable ritual of making incoming cash receipts stretch
to cover short term obligations frustrates even the most seasoned business managers.

In recent years, an increasing number of businesses have discovered
that factoring account receivables can combat the ups and downs of
unpredictable cash flow cycles.  More importantly, factors are providing
the small business community with a viable source of working capital
when conventional financing is not always an option.

Currently, several billion dollars in account receivables are factored
in the United States each year.Historically, the bulk of factoring was
predominately in the textile, furniture and apparel industries. 
Today, factoring account receivables firms are working with all
types of industries, including: manufacturers, service providers,
transportation companies and high technology firms.  Locally, as growing
firms continue to prosper, suppliers and contractors are looking
for additional sources of working capital to accommodate increased sales volume. 

The overall increase in factoring account receivables volume is
mainly attributed to the credit crunch in the late 80s. 
As the availability of bank commercial credit tightens,
more businesses look towards alternative sources of financing to achieve growth. 

Factors can help those firms that banks often find difficult to approve
such as start-up companies whose growth outstrips cash.  The primary focus
in a factoring account receivables relationship is the credit-worthiness
of the customers being invoiced and the client’s ability to produce
a quality product or service.   Simply put, if the business has an acceptable
product or service that it provides to a creditworthy customer then
the business is a candidate for factoring account receivables.

The fact is that most companies share a common dilemma during periods
of rapid growth of incoming orders draining cash flow. 
Factoring account receivables not only provides immediate cash but,
efficient businesses also use it as a tool to increase profit margins:

1.    Take Advantage of Early Payment  Discounts - Having access to cash
enables businesses to save on average 2% by taking advantage of early
payment terms offered by suppliers.  The points saved by reducing
raw materials costs helps to offset the factoring fee. 

2.    Take Advantage of Volume Discounts - Having cash also enables
businesses to buy raw materials in greater volume. 
This saves money and directly impacts the bottom line.

3.    Reduce Late Payment Penalties and Interest Charges - Having immediate
cash on hand to pay current obligations as they become due eliminates
late charges from suppliers and other creditors. 

4.    Meet Obligations on Time - Paying vendors on time helps to
establish a solid credit track record and allows for increased
future credit limits from vendors as well as financial institutions.

5.    Offer Credit Terms to Customers - Offering credit terms to
customers is a common way to increase sales by making it “easier” for
customers to buy.  Having financial backing to carry account receivables
is essential if a business wants to be able to follow through on its commitments. 
Reputable factors encourage “managed” growth by consulting
with clients regarding exposures and other risks when taking on new credit accounts.

The difference between factoring account receivables and other sources
of financing is that the factor actually purchases and tracks commercial invoices. 
In addition to providing immediate cash on invoices, the factor performs
valuable credit analysis on new and existing customers and conducts professional,
routine follow up on invoices as they become due.  

For the business manager who spends a good portion of the day collecting,
bookkeeping and searching for capital, the entire factoring account receivables
package offers peace of mind.  The manager can actually focus on important
aspects of the business that are often pushed aside, such as marketing and production.

Depending on the agreement, businesses can pick and choose which invoices
they wish to sell to the factor, who immediately advances eighty percent
or more of the face value of the invoices.  The balance of the funds,
less the discount fee, is released once the invoice is collected.  

The cost of doing business with a factoring account receivables company
is the discount taken on the invoices submitted for funding. 
Fees range from 1 to 10 percent, depending on volume,
credit-worthiness of the customers sold and overall risk. 
The discount taken is best compared to a merchant accepting a Visa
or MasterCard transaction and receiving immediate payment,
less a percentage or discount, before the actual cardholder
has paid his or her monthly statement. 

Setting up a factoring account receivables relationship is quick and easy
in comparison to other forms of financing.  Applications simply call for
basic company information and a customer list.  Years of profitability are
not required which makes factoring account receivables an
option for startups generating receivables.  It is possible that funding
can occur in as little as a couple of days after the
receipt of the application and invoices.

Each factor operates slightly different.  It is important to understand
which programs provide the greatest benefits and at the least cost.
Several criteria should be addressed when searching for a reputable factor.
Are there setup fees, maintenance fees or penalty fees?
Is there a long term contract? Are there monthly minimums?
Does the factor provide credit and collection services at no
additional charge? What accounting reports will the factor supply? 
What value-added services does it provide? 

Most business bankers are a good referral source for reputable
factoring account receivables companies.  Bankers refer to factors because they realize
that although the customer may not be bankable at the time of the referral,
in a short time it could be a viable candidate for conventional financing.
As a short term financing solution, factoring account receivables
relationships generally run from 6 months to a couple of years.   

Businesses choosing to maintain momentum, despite a lack of conventional
financing options, find that factoring account receivables not only offers
cash but also a stable foundation on which to build. They look to a future
of managed growth and profitable performance that will bridge
the gap to qualifying for bank financing.