Your Alternative Funding Solution

FAQ about Accounts Receivable Financing

What kind of companies are ideal candidates for A/R Financing? Many kinds of companies are ideal candidates for A/R financing. Eligible invoices must be from business to business. Manufacturing, staffing agencies, and transportation are examples of industry sectors that are good prospects for A/R financing.

What is factoring?

Factoring describes the process of selling an invoice (or group of invoices) to a bank or private company engaged in commercial finance. There are many flavors and variations of factoring. For many years the garment, light manufacturing, and transportation industries have preferred factoring over other traditional forms of financing. With more businesses providing services instead of goods, factoring has become popular. Why? Because service oriented companies tend to be heavily laden with accounts receivables. They have few collateral assets to offer lenders.

BENEFITS

Will financing my A/R with NCG provide any other benefits to my company other than accelerating cash flow?

Nobility Capital Group carefully screens your client base for credit worthiness and a company's ability to pay your invoices. The network uses numerous business credit reporting agencies and are experts at evaluating business credit. Though no NCG partner would restrict your ability to choose who you do business with, our knowledgable and professional staff can be of great value to your company by providing professional credit screening.

ELIGIBILITY

How do I become eligible for factoring services?

When beginning a relationship, financing sources will generally accept all outstanding accounts receivable less than 90 days old for qualifying account debtors of NCG customers.

COST

How much does it cost?

The following factor's dictate the cost: (1) the specific circumstances of a particular business, (2) how much financing is needed on a monthly basis, (3) the type of product or service being provided, (4) the payback terms on the invoice (5) the overall financial health of the business being financed. Our financing sources strive to give an interested company a fair estimate of cost range as soon as enough information is obtained to do so. A proposal term sheet can be provided shortly after the financing source has obtained enough information necessary to more accurately estimate cost and other terms of a potential relationship.

How is the advance rate on receivables determined?

An average estimated advance rate of gross receivables is 80 to 85 percent. Occasionally, based on the product or service being offered it is necessary to reduce that advance rate to 75 percent. Conversely, it is not uncommon to be able to have an advance rate of 90 percent for products or services that have a negligible risk of return or offset.

What other fees are incurred other than the discount rate?

Occasionally, depending on specific circumstances, a small due diligence fee, or expedited lien search fee may be required at the time a customer accepts a funding source's good faith proposal. Each financing source has a small charge for handing wire or ACH transfers.

How quickly can I begin Factoring my invoices?

As soon as we  receive some basic information from you, the prospective customer, we will make a proposal that will outline terms, cost, and advance rate. If accepted by you, the first funding can occur within a week to 10 days. Occasionally it can happen sooner.

FAQ on Credit Card Receivable Financing

1) How do I qualify for an advance?

If you accept payment by Visa/MC, you may already qualify for an advance

2) How much money can I get?

NCG is capable of advancing a retail merchant anywhere between $1,500 and $150,000               per location. We average your last 4 months Visa/MC volume and advance based on             that amount.

3) Is this a loan?

No! This is a purchase of future receivables at a discount rate. These rates vary depending on the merchant's time in business, total monthly volume sales, and payback rate.

4) Is there a monthly payment schedule?

No! The advance is payed back by taking a small percentage of your daily Visa/MC transactions and it is automated for everyone's conveinence. In fact a large majority of our client say they don't even feel a burden of debt because they don't have to juggle another large monthly bill.

5) Does the advance affect my credit?

The credit of the merchant plays a small roll in qualifying for the advance, however, it does not show up as debt on the company balance sheet. Simply put, accepting the advance will not put you in a negative position if you were trying to obtain additional means of capital.

6) Are there any up front fees?

There are no up front fees. Upon receipt of your last 4 months processing              statements, you can receive a no obligation quote within 24 hours.

7) Do I have to change processors?

Possibly. Our system supports several processors, If yours is not one of our sister processors, you will have to be set up with our own processor, or one we work with. NCG garranties that your current rates will not go up and more likely be reduced.

8) Are there any closing costs involved?

The only possibility of an out of pocket expence would be if  your current               processor charges you a cancelation fee. This is usualy a nominal fee.

9) What if I haven't been in business for a year?

NCG has a variety of funding programs for new retail business owners. Call               us to discuss one that fits your funding needs.

10) How soon can I get the money?

After we receive your last 4 months processing statements, you will be getting a conditional offer within 24 hours. Upon your acceptance of that offer, the process can be completed in as little as 8-12 days and the funds will be deposited directly into your business account.

Call us today for your free quote at 1-866-214-3402