P: 408-997-1504
Accounts Receivable Solutions
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RESOURCE BUSINESS PARTNERS INC.
Resources
FAQ
Q: Why would a company factor their receivables?
A: Companies that find cash flow to be a recurring problem often can't afford to have their invoice payments tied up for 30, 60, or even 90 days. They need cash now to meet the immediate financial demands of their business.
Q: Is factoring a type of loan?
A: No. Factoring is defined as the purchase or advance of a company's receivables at a discount. By contrast, a loan would use those receivables as collateral.
Q: Does my company have to have good credit to qualify? Do I personally have to have good credit?
A: No. Resource Business Partners will factor your invoices provided that your customer is credit worthy and has shown a good payment history.
Q: How much do you advance?
A: We advance 80% of the factored invoice. Once your customer pays the full invoice amount, we return the remaining 20% minus our fee.
Q: If a factor buys my invoices, who actually bills my customer?
A: You prepare and mail your customer's invoice as usual. Then you send a copy to Resource Business Partners and receive an immediate cash advance. Resource Business Partners follows up to ensure receipt of payment. If you need help creating an invoice, we are happy to help.
Q: How quickly do I get paid?
A: Resource Business Partners pays as soon as the invoice is confirmed, usually within 24 hours of confirmation.
Q: How much does factoring cost?
A: 4% for the first month, then down to 3% for each additional month (prorated at .10% per day after the first month)
Q: Do I need to factor all of my invoices?
A: No. You have the power and control to decide which invoices you want to process in order to manage your own cash flow needs.