How Accounts Receivable Factoring Works

Hi Phyllis Rector. Yes, you have at least one other video of me so far. Once again, I would love to share to you a story about a client of ours whom we have helped out through accounts receivable factoring. So, normally, we'd actually, up until recently target customers, companies with about 250,000 in sales up to approximately 5 million.

The recession has provided us with many opportunities though, and last December, we have financed a windows installer and distributor, who for the first six months, earned up to $8 million. Then, he had orders on his books, you know contracts signed but as you know in construction, sometimes those contracts don't mobilize and he had a whole lot of stuff on his books. Bad news is, many of those contracts did not mobilize and many of his competitors went bankrupt. As a a business initiative, he put up for sale his show and building. And then actually, unsolicited, he had a major general contractor come to him wanting him to do provide the windows and install them for a mixed use commercial and residential project.

Surely, this guy agreed. Then the time came when the buildings were ready and they're to install the windows. They had been on order and his supplier mentions, yeah, I'll ship you the windows, Cash on Delivery. What is the guy going to do? Great thing that he called one of my associates, who in turn called me; I met with him and we agreed on a mutually beneficial arrangement so that the windows get shipped and the supplier was paid COD. Our client, the windows installer, finished the installation, billed his general contractor, took that over. We waited about 50 days, got paid, rebated it back to him, the difference between the discount and our charges, kept him in business.

So just as a reminder, we do have some minimum requisites and they're pretty basic. Our clients must have at least two customers, and they must be in at a minimum of a $20,000/month run rate in revenues. Thus, if your business has suffered, but you are beginning to grow out of it, and you require some financing or you even think you're going to need some financing, call me. Nothing beats the early bird, they say; with this, you'll be able to take on that big order as soon as it comes. So, call me. Send me an email. We at the Interface Financial Group are in the business to be of service to you.