Property Preservation Factoring
Is Property Preservation Factoring Right for you?
Invoice Factoring is a special type of business financing that is often used by property preservation companies to manage cash flow. When it comes to property maintenance or upgrading units, many times a site visit will have to take place before the authorization of the work has been approved. This adds additional time to the clock when you are waiting to be paid.
How does it work? It’s simple, you sell your open invoices to our factoring company at a discounted rate, for immediate cash. We advance you the lion share of the invoice face amount within 24 hour. We will pay you and then your customers will pay us directly.
When using a factoring company, you gap the time that it takes from the day you invoice your customers to the time they make their payment. You provide a service to your customers, when the services have been rendered, you invoice your customers with net terms of 15, 30, 45 or 60 days, then you must wait a minimum of this time before you receive their payment. If you factor that same invoice for services rendered, you will be paid by us within 24 hours.
You can either continue waiting to get paid directly by your customers or you can take action now by selling your open invoices to our company, where you get paid within 24 hours, we will wait to get paid by your customers.
The factoring company assumes the risk of collecting the invoices for a maximum of 90 days, which can be beneficial for property preservation companies that may struggle with collections. This service can also help property preservation companies to avoid taking on debt or relying on loans to manage their cash flow. The factoring company will charge a factoring fee for their services, which can reduce the amount of money the property preservation company ultimately receives from the invoices. If you need to expedite your payments so you can have a positive cash-flow, then factoring can be a very good option for your business.
Overall, property preservation factoring can be a useful financial tool for companies in this industry, but it is important to carefully consider the costs and benefits before deciding whether to use this service.
What are the Benefits of using Property Preservation Financing?
The benefits of property preservation factoring include:
Improved Cash Flow: Property preservation factoring provides immediate cash flow to the property preservation company. By selling their accounts receivable to a factoring company, they can get cash up front and use it to cover their immediate expenses.
No Debt: Property preservation factoring does not involve taking on debt, unlike traditional loans or lines of credit. This can be especially helpful for companies that may not qualify for traditional financing.
Easy Qualification: Factoring companies typically look at the creditworthiness of the property owner or mortgage servicer, rather than the property preservation company's creditworthiness. This can make it easier for companies to qualify for factoring services. To get started click here
Reduced Risk: When a property preservation company sells its accounts receivable to a factoring company, the factoring company assumes the risk of collecting the invoices. This can reduce the risk of non-payment or late payments, which can be beneficial for the property preservation company.
Timesaving: Factoring companies handle the collection of invoices, which can save time for property preservation companies. This allows them to focus on other aspects of their business.
Overall, property preservation factoring can be a useful financial tool for businesses that need to improve their cash flow and reduce their risk of non-payment, assist in covering payroll costs and the purchase of inventory.
The invoice factoring process is simple, you complete our online application, we run some quick checks to make sure your company is open and in good standing, we check to see if you have any all asset liens/UCC Filings and then we send you out our agreement via an e-signature platform for you to review and to sign. After you sign the agreement, we will send you a short list of items that we will need from you, to get your file approved with one of our in-house underwriters. You will then be assigned an account rep, he/she will reach out to you, start the verification of the invoice/s and prepare your funding.
What is Property Preservation?
Property preservation refers to the process of maintaining and protecting a property, typically a foreclosed or abandoned property, to prevent it from deteriorating further and to ensure that it remains in compliance with local, state, and federal regulations. The goal of property preservation is to safeguard the value of the property and protect it from damage or decay until it can be sold or otherwise disposed of by the owner or lender.
Property preservation is also when a management company is in control of an apartment/housing complex, for the purpose of maintaining the grounds and buildings. These management companies hire contractors, gardeners, painters, handmen and other industry professionals to maintain the property. In many cases management companies hire professionals to go in to clean, paint or renovate a unit after a lease comes to an end.
Property preservation may include tasks such as securing the property, removing debris, maintaining the lawn, repairing or replacing damaged fixtures, and conducting regular inspections to ensure that the property remains in good condition. It is often carried out by property preservation companies or contractors who are hired by banks, mortgage servicers, or other organizations that own or manage properties.
HOW INVOICE FACTORING WORKS
