Through the utilization of a factoring facility, bank loans or lines of cred can be paid off and the client will have the cash flow to stabilize their business or sustain operations. Invoice factoring also provides businesses with immediate access to the cash flow they need, without a lengthy application and approval process.
Capstone Make Invoice Factoring Easy
With Capstone, the process of applying for factoring is easy. We’ll need to review a few key pieces of documentation from your clients, such as:
- the credit worthiness of your client’s customers
- A current accounts receivable aging report
- A copy of any loan documents or credit agreements with current bank or lender
- Any amendments for forbearance agreements (if applicable)
This information lets us quickly determine whether we can help your client.
Clients can pay off their loan or line of credit and continue to use factoring in the future if they wish to fund working capital. Once set up, the process is simple:
- The client submits an invoice or progress payment as work is completed.
- We verify the invoice.
- We immediately advance the amount of the invoice minus a small reserve.
- When the customers pay us, we rebate the reserve, less the factoring fee.
This process ensures the business will always have the cash on hand to continue operations and help them through rough patches with defaulting on loans. As the client grows their business and resolves their situation, many businesses can emerge financially stronger and may be candidates for traditional lending services.
Factoring with Capstone can alleviate risky loans and workout situations, ensures the banks or lenders get paid back, and provides future opportunities for all.
Contact Capstone Today
Contact the invoice factoring experts at Capstone to review your portfolio, understand the options, and see how we can help your bank workout group.