How Factoring Helps Small Business

Good day, this is Phyllis Rector - please let me share to you an anecdote about a business owner whom we have assisted. So, the Interface Financial Group, we pride ourselves on how quickly we can get people funded. Here in Arizona, I'm dealing with a staffing organization. He actually provides electricians to electrical contractors. Although he doesn't work under a sub-contract agreement, he is still considered as being in the construction industry.

So, this guy who had been doing 8 million dollars last year, in 2008, his business fell off a cliff just like the rest of the construction industry and he was, you know, kind of limping along. I'd talked to him. He liked our service. He was particularly liking the fact that it is a "use it as you need it" service. No minimums, no maximums, no commitments in terms of time.

However, he is adamant on the notion of having to tell his customers that they were to sign on our notification of sale and consequently have to pay us directly. For him, this is like saying that he is in deep financial debt.

Well, to the unfamiliar, let me say that accounts receivable factoring has been here for around 4000 years already. it's not a new type of financing - and businesses with a larger customer base may be more knowledgeable about factoring. So, please allow me to tell you. Boeing, you know the airplane manufacturer, their suppliers factor their invoices and how do I know, because one of their suppliers came to us for a spot factoring for a really big order.

Okay. So, in any case, this guy finally came contacted me on a Wednesday afternoon. He does weekly payroll every Friday. So on Thursday morning, we met up and had the paperwork accomplished. After having his notification accomplished, I was able to send him money by 1pm on Friday - just in time for his Friday payroll. Waited about 45 days, got paid, rebated him back the difference between the discount and our fee. So, I do like to remind you that we do have some minimum requisites.

This isn't in terms of the size of the invoice that you sell us; rather, this is regarding the size of the company that we will finance. You need to be at a $20,000 a month run rate in revenues. Okay. You need to have at the minimum 2 customers and so if you started growing out of this recession and you're starting to see your business pick up, give me a call .....