My company is Olympic Credit Fund ( www.ocf.com ). We are a nation-wide factoring service currently purchasing invoices in the cable industry totalling over $1,000,000 per month. We have numerous Prime Contractor clients factoring with us across the country and have relationships established with all credit-worthy Service Providers. Olympic Credit Fund is a Direct Funder not a Broker.
My client had many questions when he went searching for a factor. Here are a few...
Q.) Can I get an account established and funded completely over the Internet with no paperwork ?
A.) Are you kidding me ? Since when did Time/Warner even speak to a factor on your behalf without a notarized agreement on YOUR letterhead ? Additionally, the verification process any factor who plans on staying in business will require simply demands redundancy that only documents can provide in many cases. Do the paperwork upfront. It's simple and only takes a few minutes.
Q.) How much are the upfront fees ?
A.) Factoring exists to help out companies in a cash flow crunch. Despite this, some do charge account setup or due diligence fees. Olympic Credit Fund does not.
Q.) How much do factoring fees run ?
A.) Fees depend on total volume ($'s) factored, credit worthiness of YOUR debtors and total amount of invoices factored. Large volume, minimal invoices and A+ credit rated debtor equals very low rates. I've heard horror stories of factors or brokers quoting 10% fees to prospective clients in your industry ! That's completely out-of-line and shows total ignorance for how your businesses are margined.
Q.) How much can I be advanced on my invoices ?
A.) This varies depending on the factor. Anywhere from 70-90% is the norm. Olympic Credit Fund provides 90.
Q.) How much can I factor monthly ?
A.) Make sure your factor can handle your volume and your growth. If your debtors are credit-worthy, Olympic Credit Fund will extend you as much as $1,000,000 a month or more if needed.
Q.) Am I a qualified to factor ?
A.) If you are a PRIME CONTRACTOR with a solid business, no payroll tax or lien problems with good subcontractor relationships...ABSOLUTELY ! If you are a subcontractor, Olympic Credit Fund will not factor you, but others will. If you're ready to go out on your own and have potential business in place we'd like to talk to you.
Sorry for the long-winded post. If you are a Prime Contractor and want more information on how to solve your cash flow problems and watch your business grow, feel free to contact me.
Jerry Ketsdever
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