Why Factor Invoices with ARFC?
Cash is king! It’s the life blood for every business and critical for small businesses. Cash flow problems can cripple a growing businesses. Everyday operations suffer because all your efforts are concentrated on collecting money on current invoices rather than focusing on operating and growing your business. Sales can suffer…Company morale can suffer…Needed improvements are delayed or canceled. Banks aren’t lending money to small businesses and large companies are taking longer to pay in order to maximize their own cash flow.
Factoring your receivables provides for your company to have the cash it needs today rather than waiting over 30 days to receive payment from your client. Money provided by factoring your receivables can used for whatever your company needs, such as:
- Pay Creditors
- Make Payrolls
- Pay Taxes
- Take discounts on merchandise purchases
The money is cash without borrowing. Funds are available upon presentation of invoices and backup documentation. You won’t need to go to the bank and try to re-negotiate a loan every time you need money. The amount of cash available is directly related to your companies monthly sales volume. Bookkeeping is simplified and factoring your receivables eliminates you from being the both the supplier and collector. Factoring your receivables will save you time and increase your ability to service more clients. Factoring your receivables will not only provide you with greater cash flow, but will also allow your company to achieve steady growth in any financial market. The table below shows some of the benefits of factoring.
| Without Factoring | With Factoring | |
| Revenues | $100,000.00 | $200,000.00 |
| Cost of Goods | $65,000 (65%) | $130,000 (65%) |
| Gross Profit | $35,000 (35%) | $70,000 (35%) |
| Variable Cost | $10,000 (10%) | $20,000 (20%) |
| Fixed Cost | $20,000 (20%) | $20,000 (20%) |
| Cost of Factoring | N/A | $5,000 |
| Net Profit | $5,000 (5%) | $25,000 (12.5%) |
Our Factoring Program
Factoring with ARFC is easy and straight forward. Our goal is to make funding a smooth and effortless process for our clients. Once you have generated an invoice, you can forward the original invoice and all relevant back-up documentation to ARFC to start the funding process. ARFC will require back-up paperwork such as, purchase orders, shipping records or contracts. Providing all of the documentation to us at the same time as you submit your invoices will help to speed up our backend process and get you the cash you need faster.
Quick Decisions and Funding - ARFC understands that a quick turnaround on your money is important. As soon as we receive the original invoices, your account executive will expedite the process and get you setup for funding. Same day funding is available on a limited basis, check with your account executive for more information.
Credit Administration – ARFC will run credit reports on your customers to determine their credit worthiness. ARFC will also call on trade and bank references if we need additional information to approve your customer. We offer this service at no additional costs to our customers.
Full Collection Service – ARFC does all of the collections in-house. We work the invoices just as you would in your own office. We try our best to make our process invisible to your customers and on occasion will ask you for assistance with collections.
Personal Service - Each account is assigned an Account Administrator. Your administrator is available to answer your questions at any time.
Invoice and Statement Mailing – ARFC will mail all of your invoices to your customers at no additional charge. We will also send out monthly statements to your customers.
Online Account Access – ARFC provides all of our clients the availability to review their account online. Using our secure server, our clients can access all of their reports online 24 hours a day. Invoices can be submitted to our system electronically through our web portal or via email to your account executive directly.