Manufacturer Factoring Company
What is Manufacturer Factoring?
It’s important to know that manufacturer factoring is not a loan, there are NO APR fees. Be careful of any company that is going to charge you an APR. So, what is manufacturer factoring? It’s alternative financing, it’s when your company sells its open invoice, at a discounted rate for immediate cash. When you factoring your invoices, you are NOT taking on additional debt that needs to be paid back.
Why should you choose Manufacturer Factoring over a traditional loan?
It’s pretty simple, if you open a line of credit with a bank, you will take on additional debt. You will have another monthly bill to pay. Yes, you will have working capital and cashflow but at what monthly cost and for how long?
When you use invoice factoring, you are not taking on any new debt. You get to choose the invoices that you want to sell us, we don’t force you to sell us your entire book of business. If you find that your company is running low on cash, you can simply sell a few invoices and we will advance you the money within 24 hours.
As a Manufacturer, are you feeling the financial pinch due to slow paying customers? You have money coming but you also have money going out, Invoice factoring gaps the time frame, from the day you invoice your clients to the time you get paid. If you are concerned that your cashflow is running low, you simple sell some invoice and within 24 hours you are cash positive again.
What happens if you pick up some new accounts and you have to fulfill big orders, are you going to have to back to the bank and request a larger line of credit? If you do, you are going to have to wait to see if this is approved. If you were to use invoice factoring opposed to a bank line of credit, all you have to do sell us more invoices to get you the capital you need to fulfill your new orders.
Manufacturers Beware of an APR Fee
Alliance One is a traditional factoring company, we DO NOT charge you an APR Fee, on top of our factoring fee. Many of our competitors have converted from a traditional factoring company to an alternative factoring company, which simply means they will charge you a factoring fee and they will charge you an APR fee. To make matters worse, they do not tell you about the APR fee, the APR fee is buried deep in their factoring agreement. You do not have to use our company but when are shopping around for a factoring company, the number one question you need to ask is... Do you charge a factoring fee and an APR fee?
As a Manufacturer, are you already acting as a factoring company?
Do you offer a 2% discount to your customer if they pay their invoice within 10 or 15 days? Maybe you do and maybe you don’t. Many manufacturers do offer a discount to expedite payments. When you offer a 2% discount, this might entice your customers to pay you more rapidly. Some customers will take advantage of this discount and others will not. If you offer a 2% discount (or any discount), you are acting as a factoring company already.
Our company is offering our services at the same two percent rate that you are most likely discounting to your customers already. They only difference is, when you sell us an invoice we guarantee (after verifying the validity of the invoice) that we will pay you within 24 hours. This is faster than you are requesting payments (by offering a discount) from you customers now.
Let's face it, waiting to get paid on your aging invoices isn't always easy to do. Every business would benefit from positive working capital. You did your job, now it's time to get paid.
Alliance One provides account receivable factoring, that is fast, reliable and secure. Manufacturing factoring gives you peace of mind, knowing that you will get your Money within 24 hours of selling us your invoices. You NEVER AGAIN have to wait 30, 60 or even 90 days to get paid.
How can Manufacturer Factoring assist in growing your business?
- By giving you the cash flow you need, without waiting for your customers to pay
- It give you the ability to hire more employees
- It allows you to increase your inventory
- Gives you the ability to grant new and longer credit lines, for your existing customers
- It eliminates existing debt
- Allows you to purchase new equipment
If you are really interested in growing your business without worrying about the money needed, then utilizing manufacturer factoring is your solutions. If your goal with invoice factoring is simply to make your business run smoother, without the headaches and concerns about making payroll or paying your bills, we can help with this too. Stop worrying about when you getting paid and apply today, it's time for financial freedom.
Factoring for Manufacturers - Q&A
- Do I have to factor all of my customers and all of my invoices? No, you only have to sell us the invoices that you want, from the customers that you want
- What if I have poor credit or a bankruptcy? In most cases, your credit does not matter, we look for the credit worthiness of your customers
- How long does it take to setup a new account? We traditionally can get a new account setup within three business days.
- Do my customers pay our company or Alliance One? We pay your and your customers pay us
- What are the factoring costs? Factoring programs can be designed based on what's best for your company, check our Pricing Page for more details. Traditionally, factoring fee start around 2% for the first 30 days or $2.00 for every $100.00 in invoices that you sell us.
Common Reasons why Manufacturers turn to Factoring
Many times, it's because, the business is rapidly growing, which is great, but it can put a strain on your cash flow. Other manufacturers develop seasonal products, where you are very busy at certain times in the year but slower on other occasions. Other companies, might be heavily weighted in business, with one customers and perhaps this customer has extended their payment terms, putting a damper on your cash flow. Other manufacturers can simply be under capitalized or are suffering with bad debt. No matter what the situation is, good or bad, invoice factoring serves one purpose and that's making sure you always have working capital, to run your business.
Signing up with Alliance One, is easy, you are only click away. It normally takes five - seven days to get your account setup and approved to factor. If you are ready to try factoring as alternative way to fund your business, then this time next week you can expect your first funding. Are you ready to take the first step? All you have to do is... complete our non-binding application now.