New to Factoring?

For those who aren't familiar with factoring, it is basically a fast way to get cash to run your business.

Factoring is Not a Loan

When you send your customers an invoice, they usually have 30 days to pay you back. Factoring companies will give you the bulk of the cash up front, sometimes within 24 hours, and collect the payments from your customers themselves. Once the invoices are paid in full, you’ll get the balance left over, minus a small fee.


Factoring Doesn't Require Debt

Sounds simple enough – fast cash for your business – no loans, no debt.

So how do you go about choosing the best factoring company?

Not all of them are created equal. Not all of them will give you the same level of service you need to help grow your business.

Everyone claims they have the simplest rate structure in the industry, no long-term contracts, same day funding, no up-front fees, no monthly minimums or maximums, etc., etc., etc.

We also offer these same benefits, but we GO THE EXTRA MILE FOR YOU that other factoring companies don’t.

Here’s Why We Are The Factoring Company You Need For Your Business

No other factoring company matches our level of superior service and offerings.


As you can see, we simply have more to offer you.

Other factoring companies don’t even compare.
New Orleans

And Not All Factoring Companies Can Say This:

More than half of our new business comes through client referrals.

So, Can Your Company Use Factoring?

Of Course! Companies of all sizes, from small privately-owned companies to large multi-national corporations, use factoring as a way to increase their cash flow. Factoring spans all industries, including trucking, transportation, manufacturing and distribution, textiles, oil and gas, staffing agencies and more.

Companies use the cash generated from factoring to pay for inventory, buy new equipment, add employees, expand operations—basically any expenses related to their business. Factoring allows a company to make quicker decisions and expand at a faster pace.

Unlike a bank loan, factoring has…

  • No principle or interest to pay over time
  • No debt to repay
  • Unlimited funding potential – no caps
  • Fast funding – no waiting months like at a bank
  • Approval is based on the strength of your clients, not your credit
  • Startups are welcome in using funding services

Some of the benefits you receive with factoring are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information for the city of New Orleans

"

New Orleans, the largest city in Louisiana, is located in the southeast part of the state, between the Mississippi River and Lake Ponchartrain. It is coextensive with Orleans Parish.One of the few cities of the nation that has been under three flags, New Orleans has belonged to Spain, France, and the United States. The French founded it in 1718 and named it in honor of the Duke of Orleans. In 1762, France ceded the city and the territory to Spain. In 1800, the territory was returned to France, but government authorities did not take over until 1803, just 20 days before the region became part of the United States in the Louisiana Purchase.New Orleans is famous for its French Quarter, with its mixture of French, Spanish, and native architectural styles. The Mardi Gras > a week of carnival held in New Orleans before the beginning of Lent is the most spectacular festival in the U.S. and is a popular tourist attraction.

 

Despite Hurricane Katrina, the 2006 Mardi Gras was still scheduled to be held.New Orleans has one of the world's greatest international ports and it is a major focus of the city's economy. New Orleans is home to the corporate offices of oil companies with major offshore operations in the Gulf of Mexico, as well as the distribution and service centers of offshore equipment suppliers and fabricators. The manufacturing industry is a significant part of the economy, with petroleum, petrochemical, shipbuilding, and aerospace industries all playing a role. The New Orleans region also functions as a mining, processing, and transportation center for other minerals, principally sulfur. Service industries are playing a larger role, with health care and telecommunications leading the way. The New Orleans region is widely regarded as a leading center of medicine and health care in the South.On Aug. 29, 2005, the Category 4 Hurricane Katrina hit New Orleans, flooding the city on Aug. 30 and disabling its pumps.

 

This was followed by the breaching of the levees holding back Lake Pontchartrain, flooding 80% of the city. Federal and local officials were widely criticized for their slow and inadequate response. A year after the disaster, many evacuees had not returned to the city and the city population had dwindled to about half of its pre Katrina numbers.Today, New Orleans is making strides on the path toward recovery. Always hospitable, the city has opened its doors extra wide as part of the city's revitalization efforts; Mayor : ""We have hosted an unmatched string of major events in the last two years including the Championship, Final Four and Navy Week, and now we get ready to welcome the world to New Orleans for the world's biggest show"" 2013's XLVII ""we couldn't be more excited.""New Orleans has one of the largest and busiest ports in the world, and metropolitan New Orleans is a center of maritime industry. The New Orleans region also accounts for a significant portion of the nation's oil refining and petrochemical production, and serves as a white collar corporate base for onshore and offshore petroleum and natural gas production.New Orleans is a center for higher learning, with over 50,000 students enrolled in the region's eleven two and four year degree granting institutions.

 

A top 50 research university, Tulane University, is located in New Orleans' Uptown neighborhood. Metropolitan New Orleans is a major regional hub for the health care industry and boasts a small, globally competitive manufacturing sector. The center city possesses a rapidly growing, entrepreneurial creative industries sector, and is renowned for its cultural tourism. Greater New Orleans, Inc. (GNO, Inc.) acts as the first point of contact for regional economic development, coordinating between Louisiana's Department of Economic Development and the various parochial business development agencies.PortNew Orleans was developed as a strategically located trading entrep�t, and it remains, above all, a crucial transportation hub and distribution center for waterborne commerce. The Port of New Orleans is the 5th largest port in the United States based on volume of cargo handled, and second largest in the state after the Port of South Louisiana. It is the 12th largest in the U.S. based on value of cargo. The Port of South Louisiana, also based in the New Orleans area, is the world's busiest in terms of bulk tonnage. When combined with the Port of New Orleans, it forms the 4th largest port system in volume handled. Many shipbuilding, shipping, logistics, freight forwarding and commodity brokerage firms either are based in metropolitan New Orleans or maintain a large local presence.. The largest coffee roasting plant in the world, operated by is located in New Orleans East.Like Houston, New Orleans is located in proximity to the Gulf of Mexico and the many oil rigs that lie just offshore. Louisiana ranks fifth among states in oil production and eighth in reserves in the United States. It has two of the four Strategic Petroleum Reserve (SPR) storage facilities: West Hackberry in Cameron Parish and Bayou Choctaw in Iberville Parish. Other infrastructure includes 17 petroleum refineries, with a combined crude oil distillation capacity of nearly 2.8 million barrels per day (450,000 m3/d), the second highest in the nation after Texas. Louisiana's numerous ports include the Louisiana Offshore Oil Port (LOOP), which is capable of receiving ultra large oil tankers. Given the quantity of oil importing,.

 

Several major energy companies have regional headquarters in the city or its suburbs, Numerous other energy producers and oilfield services companies are also headquartered in the city or region, and the sector supports a large professional services base of specialized engineering and design firms, as well as an term office for the federal government's Minerals Management Service.BusinessThe city is the home to a single Fortune 500 company: Entergy, a power generation utility and nuclear powerplant operations specialist. In the wake of Hurricane Katrina, the city lost its other Fortune 500 company, Freeport McMoRan, when it merged its copper and gold exploration unit with an Arizona company and relocated that division to Phoenix, Arizona. Its McMoRan Exploration affiliate remains headquartered in New Orleans. Tourism is another staple of the city's economy. Perhaps more visible than any other sector, New Orleans' tourist and convention industry is a $5.5 billion juggernaut that accounts for 40 percent of New Orleans' tax revenues. In 2004, the hospitality industry employed 85,000 people, making it New Orleans' top economic sector as measured by employment totals. The city also hosts the World Cultural Economic Forum (WCEF). The forum, held annually at the New Orleans Morial Convention Center, is directed toward promoting cultural and economic development opportunities through the strategic convening of cultural ambassadors and leaders from around the world. The first WCEF took place in October 2008

 

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Information for the state of Louisiana

The total gross state product in 2010 for Louisiana was US$213.6 billion, placing it 24th in the nation. The state's principal agricultural products include seafood (it is the biggest producer of crawfish in the world, supplying approximately 90%), cotton, soybeans, cattle, sugarcane, poultry and eggs, dairy products, and rice. The seafood industry directly supports an estimated 16,000 jobs. Industry generates chemical products, petroleum and coal products, processed foods and transportation equipment, and paper products. Tourism is an important element in the economy, especially in the New Orleans area.

 

The Port of South Louisiana, located on the Mississippi between New Orleans and Baton Rouge, is the largest volume shipping port in the Western Hemisphere and 4th largest in the world, as well as the largest bulk cargo port in the world. Tourism and culture are major players in Louisiana's economy, earning an estimated $5.2 billion per year. Louisiana also hosts many important cultural events, such as the World Cultural Economic Forum, which is held annually in the fall at the New Orleans Morial Convention Center

 

Immediate payment for your invoices help you avoid financial trouble.  

The majority of factoring companies purchase invoices and advance cash within 24 hours, although the terms and nature of factoring can differ between industries and different financial service providers. -New Orleans Factoring Companies

 

 

IT WORKS WHILE YOU SLEEP  

New Orleans Factoring Companies Articles

Factoring Companies - Benefits

 

Factoring companies offer a wide variety of benefits to businesses. Factoring companies conduct financial business by allowing a business to sell its invoices to a factor (also known as a third party business or individual.) The price that the business charges is discounted in order to sell the invoices that are currently held, and make the cash that is immediately needed for any type of expenditures involving the business. A business that has immediate cash needs, but has no cash to pay for the expenditures that has occurred often ends up going under and eventually shutting down completely. This takes a lot of jobs away from people, and can leave you working for someone else, no longer running for your business. No one wants to take this large step down from the current place that they are in. A business owner has worked incredibly hard to get to where he or she currently is, and does not deserve to have their business become obsolete. This is where the factoring companies can be a huge help to businesses.

 

Invoice FactoringKeep in mind that factoring companies do not use the same process as invoice discounting. Instead, invoice factoring (also called the “Assignment of Accounts Receivable” by the FASB and GAAP) is the sale of invoices, instead of invoice discounting which involves collateral in order to ensure that the individual who took out the invoice discounting loan will pay it back. Factoring is not a loan; instead, factoring is the sale of invoices in order to get immediate cash. There is no loan in the process of factoring, and you will never have to pay the money back.

 

Since the invoices that are sold are also called receivables, the entire process of factoring is usually called the sale of receivables. Receivable factoring is much better than trying to take a loan out from the bank. Banks charge interest on any type of loan, and although there is usually collateral, it can put you in even more debt than you currently are. In addition, factoring companies are never going to give you a loan. When a factoring company funds your discounted receivable, he or she will choose to buy the receivable, giving you cash immediately. This cash can pull your entire business out of the hole that it is currently in. Instead of taking a loan out and getting yourself further into debt, factoring allows you to simply sell your own invoices and get back most of the money that you originally put into them. Although this may seem like a bad process since you are selling valuable invoices, it is important to do, as the invoices are completely useless if your entire business goes under. Instead of trying to take a loan out to keep all of your receivables (invoices) factoring companies benefit you directly by giving you the cash you need.

 

Benefits of Factoring Companies / Invoice Factoring / Receivable FactoringWhen you are in a bind and really need money in order to get through the next few months, it can be very troublesome. Although the first thought in most peoples’ minds would be to visit the nearest bank as soon as possible and take out some kind of loan, this is very dangerous. Although the loan may hold your business over for the next few months, it is simply delaying the same money crunch you already had. Unless your business is making an incredible amount of money, the bank loan that you took out has increased in the price that you must pay bank. Interest on a bank loan is how the banks make money and survive. Many loans have a very high interest rate, and if you are unable to pay the loan back in a short amount of time, you are going to be in more of a money crunch than you originally were in. In order to pay back the loan, you would have to make a large amount of money in a very short time, which is unlikely if you needed to take out the loan in the first place.

 

Rather than bothering with bank loans that will inevitably put you back in the money hole that you were in when you took it out, factoring companies are available to help you. A factoring company is a place where businesses can place their invoices for sale at a discounted price, which will allow them to receive immediate cash. As aforementioned, this money does not need to be paid back, as it is not a loan. Keep in mind, you are not selling your business. You are selling invoices in order to keep your business growing. You will be able to get more invoices in the future when your business is back up and running, but if you do not sell these invoices, you will never be back up and running.

 

When you are in a money crunch, don’t put yourself back in the money hole that you are in by taking out a bank loan. Utilize factoring companies in order to get immediate cash that will help you get back up and running without putting a loan on your business.

 

 

 

Immediate payment for your invoices help you avoid financial trouble.

 

 

New Orleans Factoring Companies Articles

Questions You Need to Ask Your Factoring Company

 

In today’s marketplace we’re seeing more and more factoring companies, and factoring fees, rates and agreement terms have become very competitive. This means that, as a potential factoring customer, this competitiveness should work to your advantage. However, there are some issues you must consider when choosing a factoring company to suit your specific requirements.

 

Before entering into any factoring agreement, here are some important questions you should ask –

 

What Are Your Terms?

 

As a factoring customer, you’ll be looking for as much flexibility in your factoring agreement as possible. It may be that you choose a long term contract with your factoring company if it includes flexible rates or a price break. In today’s competitive market, many factoring companies are agreeing to adjust their rates based on competitive offers from other factors or increased factoring volume.

 

The majority of factoring agreements are a one year contract, which appears to be industry standard, and this contract will renew automatically unless you provide the factoring company either 60 or 90 days notice.

 

What’s Your Fee Structure?

 

The fee structure may vary depending on both the factoring company involved and your industry. Some factoring companies charge a flat fee, which is calculated as a percentage of the total value of the invoice. On the other hand, other factoring companies charge additional fees to cover costs associated with doing business, such as money transfers, software, and so on. Ensure that the factoring company you’re considering working with is completely upfront and transparent with you about its terms and fees.

 

Are You Able to Offer Both Recourse and Non Recourse Factoring?

 

Recourse factoring:

 

Recourse factoring is less expensive than non recourse factoring. With recourse factoring, you (being the client) are ultimately responsible if the factoring company is unable to collect on your customers’ invoices. However, you’re not necessarily required to pay the debt out of pocket if you have a recourse agreement and the customer defaults on payment. It may be that the factoring company will withhold a portion of future cash payments or payments held in reserve, with the money being placed in an escrow account until such time as the debt has been paid.

 

Non recourse factoring:

 

When you have a non recourse factoring agreement, the credit risk for the collection of customers’ invoices lies with the factoring company.Therefore, we believe it’s to your advantage to use a factoring company that offers both recourse and non recourse factoring, simply because you may find that some of your customers are more suitable for recourse factoring than others. In addition, you need a factoring company with a strong credit team because they can work with you to ensure you’re dealing with good customers: to a certain degree this will relieve some of the pressure of being responsible for bad debt.

 

How Long Has the Factoring Company Been in Business?

 

With the marketplace becoming increasingly competitive, today we’re seeing the creation of more and more factoring companies. However, many of these companies are recent start ups, with limited industry experience. Make sure you research the factoring company’s history prior to entering into any factoring agreement: also research its background into providing financial services in your specific industry.

 

Do You Have the Capital to Grow with Me?

 

The fact that there’s no limit to the level of financing is the major advantage factoring has over traditional bank lending. As your company continues to grow, so too should the funding of invoices grow with you. Do your research and learn as much as possible about your potential factoring company’s client base and their capital structure.

 

Does this factoring company have a limit to the number of debtors it takes on? What’s a typical account size? What’s the factoring volume of their largest client? You’ll probably find that factoring companies who have been serving your industry for many years will have greater capacity to finance your company as it continues to grow.

 

Is There Anything Else You Can Do for Me?

 

Obviously, factoring is more expensive than a conventional bank loan, and this is partly due to the back office services that your factoring company is able to provide. Besides collections and financing, many factoring companies will evaluate companies in your industry and provide credit information. Therefore, when looking for a factoring company for your business, make sure the one you choose offers additional services and products that can assist you in making good business decisions.

 

How Do We Start Factoring?

 

Fortunately, factoring companies are not unduly concerned about your balance sheet before they decide to work with you, unlike banks. However, they do have a process to follow when selecting new clients, so be sure you understand what the factoring company is looking for when it’s considering you as a client. Are they looking at your credit ratings and/or your customers’ payment histories?

 

Are they looking at your personal credit score?

 

In many cases a company will start factoring because it’s looking for a quick injection of cash, so you need to know how many days the factoring company will take to review and process your application.

 

 

 

 

New Orleans Factoring Companies Articles

Explaining ‘Factoring’

 

A ‘Factor’ is a third party commercial financial company who purchases the Accounts Receivable from businesses: this transaction is known as ‘Factoring’. Factoring exists so that businesses can receive a quick injection of cash, as opposed to waiting the 60 or 90 days for customers to pay their invoices. Factoring is also known as Accounts Receivable Financing, and Invoice Factoring.

 

The majority of factoring companies purchase invoices and advance money to the business within 24 hours; however, the nature and terms of factoring can (and do) differ among financial service providers and industries. Depending on your customers’ credit histories, your industry, and other specific criteria, the advance rate on your invoices can range from 80% to as high as 95%. The factoring company not only collects on your invoices; it also offers back office support to your business.Once the factoring company has collected on your customer’s invoice,you’ll be paid the balance of the invoice – less the factor’s fee for assuming the risk. The primary benefit of factoring is that businesses no longer need to wait anywhere between one and three months for a customer to pay their accounts: they now have access to cash in hand so they can operate and grow their business.The Advantages of Factoring

 

There are a few reasons why factoring has become an invaluable financial tool for many businesses, including start ups. As mentioned above, the main benefit is that businesses can now receive a quick boost to their cash flow because factoring companies, in general, will provide cash on accounts receivable within 24 hours. This resolves the problems businesses experience with short term cash flow, and in many ways this injection of cash can help to grow a business. Besides handling your customer collections, factoring companies can also evaluate your customers’ payment and credit histories.Other benefits of factoring include:

 

• It can be customized to a business’s needs and managed to ensure that capital is available when it’s needed;
• It’s not based on your own business or credit history: it’s based on the quality of your customers’ credit;
• It’s not based on your company’s net worth: it provides a line of credit based on sales;
• There’s no limit to the amount of financing, unlike conventional bank loans;
• This financing will not show up as a debt on your balance sheet, because it’s not a loan.
Who Uses Factoring?

 

Companies of all different sizes, including start ups, use factoring; and today factoring has become common business practice across many industries. Factoring is now widely used in the transportation industry, including manufacturing, textiles, trucking, oilfield services, wholesale and distribution, and staffing agencies. Interestingly, factoring receivables is practiced in many countries around the world and has a long history of success.

 

Can I Factor? My Company’s New, with No Financial History

 

Yes, you can! In fact, factoring has become an excellent tool for start up companies because no company credit history or balance sheet is required. It’s not really your company’s finances that the factoring company is concerned with; they’ll base their financing on your customers’ payment histories and credit scores.

 

What Percentage of My Invoices Should I Factor?

 

The answer to this question really depends on the unique needs of your business. Some companies only factor invoices for customers who typically take a long time to pay, while others factor all their invoices. The receivables that a company can factor range anywhere from a few thousand dollars to millions of dollars each and every month.

 

What’s the Difference between Factoring and a Bank Loan?

 

• The difference between factoring and a bank loan is that you’re not assuming any debt with factoring because it’s not a loan;
• With factoring, there’s no emphasis on your balance sheet – it’s all on your customer’s invoices;
• In addition, a bank loan is typically one lump sum, whereas factoring provides a steady flow of funds;
• Factoring companies can also help improve your company’s balance sheet by assisting with your credit and collection functions;
• A bank loan adds to your debt, whereas factoring converts receivables (an asset) into cash (another asset);
• And of course, bank loans can be very difficult to get because they’re limited by your balance sheet.
How Do You Start the Factoring Process?

 

The factoring process can be very simple to set up. The customer will be asked to complete a short application form, and may be required to follow up with other reports and documents.

 

Recourse and Non Recourse Factoring: What’s the Difference?

 

• With Recourse factoring the client is ultimately responsibility for the payment of the invoice; whereas
• With Non Recourse factoring, the factoring company accepts responsibility for the risk of collecting the invoice.It’s important to note that some factoring companies over offer both types of factoring – recourse and non recourse.

 

What Are the Contract Terms and Fees Applicable with Factoring?

 

There are different fee structures with different factoring companies: some factors charge an overall factoring fee which is determined by the creditworthiness of your customers and the monthly volume of invoices; while others charge additional fees to cover shipping, money transfers, and other costs associated with doing business. Before signing with any factoring company make sure you understand the fees and terms applicable to your contract. Also note that most factoring contacts are renewed annually.

 

Do I Need Credit Insurance on Debtors?

 

Insurance is not typically required, but in specific circumstances it may be.

 

 

 

You Can Find More Information at  http://accountreceivablecompany.com/
and at http://constructionfactoring.org/

Call Us Today at: 1-888-266-0197

 

Watch our Factoring Company Video below to see how we work for you.

 

 


 

Get CASH NOW for your outstanding invoices.

 

New Orleans Factoring Companies Links

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