What is Factoring?
Turn "Net 30" into "Net NOW!"
"Factoring" is a process in which a receivables factoring company provides immediate cash to their clients in exchange for the rights to collect on their invoices. The California factoring client converts their accounts receivable into cash by selling their invoices to a factoring company at a discount.
Factoring is not a loan
Unlike other methods of raising capital, there is no debt incurred - therefore nothing to repay. With no compromise to your balance sheet and no long-term agreements, you can leverage your existing accounts receivables to speed money back into your business.
Stop worrying about when your customers will pay!
When you complete a successful factoring transaction you get paid today for the invoice you created yesterday. No more waiting 30, 60, or even 90 days to get paid. Take control of your cash flow and consistently meet your ongoing expense obligations without worrying about when your next invoice payment is coming through the door.
How Factoring Works
Cash flow stunting your growth?
Does your company need immediate cash for a California construction project? Whatever your cash needs may be, factoring in California is simple and fast with Resource Business Partners, Inc.
Here's how it works
Factoring is cash against invoices in California. You send Resource Business Partners your customer's invoice; RBP will advance you cash for 80% of the invoice value within 24 hours. When your customer pays Resource Business Partners, we send you the remainder of the invoice value, minus our 5% factoring fee.
Factoring allows you to get the cash you need now, wired to your bank account, at a price you can afford.
| Here's an example: |
| Client's invoice | $1,000 |
| Cash advanced to client from RBP | $800 |
| 5% Fee retained by RBP | $50 |
| Reserve fund held for client | $200 |
| Cash advanced to client from RBP | $800 |
| Customers payment rcv'd by RBP | $1,000 |
| Reserve refunded to client less fee | $150 |
Why Factor?
If your company requires consistent access to cash to fund the ongoing operations but struggle with increased scrutiny from your traditional bank line of credit, then you are a good candidate for factoring in California.
Factoring and Invoice discounting doesn't add any additional debt to your balance sheet. By using this "invoice discounting" service as a cash flow solution your company benefits from not having to give up any existing equity share in return for funding your California small business.
Factoring your construction invoices provides you with immediate cash based on the value of your invoices. You will get 80% of the money for your invoices immediately. Use those funds to meet your payroll and other expense obligation.
Factoring provides you the opportunity to maintain excellent relationships with your vendors & suppliers, since you'll be able to pay them on-time more often.
