Archives February 2016

What is Factoring?

What is Factoring?

We get that question frequently so we thought we’d give an example of factoring with an international client we recently worked with to improve cash flow. The client came to us originally looking for venture capital to help her growing business. We explained we aren’t a venture capital firm but do offer financing options for growing businesses. Over a few weeks, we discussed the company’s needs and found factoring would be the best solution.

The client completed our application and submitted it along with a letter of credit from her customer, an official standing order that states the bank is to pay us upon successful completion of the transaction and a copy of the purchase order.

Once we received this information and performed our due diligence, money was wired to the client within two weeks. This helped client improve their cash flow to perform the operations needed to fulfill the customer’s order. The client delivered the product successfully to its’ customer and the customer paid. That payment was sent to us including the full principal and interest in about 60 days from first wiring the money to the client.

If you need to improve your cash flow, let us help. We can factor accounts receivable, purchase orders and invoices to give you the cash you need now to grow your business. Instead of waiting 30, 60 or 90 days for that invoice to be paid, use factoring to get paid now. With factoring, we don’t look at your credit; we look at your customer’s credit. You don’t take on debt with factoring so this is not like a loan from your bank.

If you need to improve your cash flow, invoice customers, wait 30 to 90 days for payment from solid customers, need a line of credit or working capital loan, we can help.

We’ve been in business since 1985 serving clients around the world. Let’s talk about financial solutions we can offer your business.

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Why You Need Factoring

simply-factoring

Why you need factoring!

When cash flow slows, it hurts your business’s ability to grow. How often have you not been able to pay bills, fund payroll and have to dodge suppliers who are calling asking for payment? It happens every month for all growing businesses.

You are making sales but your receivables are keeping you from expanding your business. What if you could get paid today for the work you have just completed? Would your business grow and expand? You need Mid-Continent Financial Services to immediately buy your accounts receivables.

Mid-Continent will be your cash flow engine. The process is called “factoring”, and in the simplest terms, it means Mid-Continent advances you up to 90% of the invoice amount immediately, and gives the remaining balance when your clients settle in full.

Invoices can be submitted for factoring directly upon completion of the work or product delivery. Revenue flows directly and instantly to you without delays. No collection hassles. You are not taking on any debt with factoring.

We can often assume all credit risk and responsibility for client payment. In return, Mid-Continent receives a small fee at the end of the process. Set-up time can be as little as two or three days and you are not locked into a long-term contract.

Mid-Continent allows you the flexibility to factor only when you need it, and as often as you like. We base our approval decisions on your customers’ ability to pay, and not the credit of your growing business.  Ask us about our invoice and purchase order financing.

Let us know how we can help.

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