Factoring
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Why Factoring is Necessary
Your Factoring
Company Benefits
Comparison of
Factoring to
Traditional
Funding
OCF Factoring Company
- Providing factoring services nationwide
- Over 70 years of factoring company experience
- Up to 97% Advance Rates
Factoring History
Welcome
to factoring. Whether you own a business,
look forward to building one
or are looking for new financial
tools for your current employer,
Factoring can help you reach your financial goals.
Factoring has the ironic distinction of being the financial backbone of
many of America's most successful businesess. Why ironic? Because
factoring is not taught in business
colleges, seldom mentioned in
business plans and is relatively unknown to the majority of American
business people,
yet it is a financial process that frees up billions
of dollars
every year, enabling thousands of businesses to grow and
prosper.
Factoring is the process of purchasing commercial accounts
receivable(invoices) from a business at a discount. Business practices
today dictate that in order to get business you, as a provider of goods
and services, must extend terms to your customers.
These terms can squeeze the life(and cash is the lifeblood of any business) out of a new or struggling company.
Factoring has a long and rich tradition, dating back 4,000 years to the
days of Hammurabi. Hammurabi was the king of Mesopotamia, which gets
credit as the "cradle of civilization." In addition to many other
things, the Mesopotamians first developed writing, put structure into
business code and government regulation, and came up with the concept
of factoring.
After a while, Hammurabi and the Mesopotamians went the way of extinct
civilizations, but factoring endured. Almost every civilization that
valued commerce has practiced some form of factoring, including the
Romans who were the first to sell actual promissory note at a discount.
The first widespread, documented use of factoring occurred in the
American colonies before the revolution. During this time, cotton, furs
and timber were shipped from the colonies. Merchant bankers in London
and other parts of Europe advanced funds to the colonists for these raw
materials, before they reached the continent. This enabled the
colonists to continue to harvest their new land, free from the burden
of waiting to be paid by their European customers.
Recognize that these were not banking relationships as they exist
today. If the colonists had been forced to use modern banking services
in eighteenth century England, the process would have been much slower.
The banks would have waited to collect from the European buyers of the
raw materials before paying the seller of these goods, the colonists.
(And at that point, who needed the bank?) This was not practical for
anyone involved. So, just as today, the "factors" of colonial times
made advances against the accounts receivable of clients, enabling the
clients to continue with their operations, long before they had been
paid for what they were sold.
With the advent of the Industrial Revolution, factoring became more
focused on the issue of credit, although the basic premise remained the
same. By assisting clients in determining the creditworthiness of their
customers and setting credit limits, factors could actually guarantee
payment for approved customers.
This is known as factoring without recourse(or non-recourse factoring)and is quite common in business today.
Prior to the 1930's, factoring in this country occurred primarily in
the textile and garment industries, as the industries were direct
descendants of the colonial economy that used factoring so
specifically. after the war years, factors saw the potential to bring
factoring to other forms of invoice-based business and the expansion
began.
Today, factors exist in all shapes and sizes: as divisions of large
financial institutions or, inlarger numbers, as individually owned and
operated entreprenurial endeavors.
Many of these private factors sprung up in record numbers as interest
rates rose to new heights in the 60's and 70's. This trend intensified
in the 80's, primarily due to the increasing impact of interest rates
and changes in the banking industry. With banks becoming too expensive
and too inflexible due to heavy regulation(remember the Savings and
Loan crisis?), the small businessperson was forced to find other
sources of financing for expansion and growth. As more and more banks
stop befriending the small bussinesperson, factoring is becoming an
increasingy popular option.
This year alone thousands of businesses will sell billions of dollars
in accounts receivable, and they are doing it for profit, growth, and
in some cases , their very survival.
.To find out how we might structure
a factoring deal for you, please complete our online factoring company application.
To
talk with a member of our sales team,
please contact one of our regional offices at:
Toll Free: 888-266-0197
and ask for Andrea
Fax #: 425-702-1874
Email: andrea@ocf.com
What Sets Us Apart
Our program includes the following
features
• Same Day funding on approved
invoices
• We do not require a long term contract.
• 97% advance rates; tops in the industry
• Credit analysis on new
and existing customers
• Continuous collection management and
follow up on
factored invoices
• Invoice and statement mailing (postage included)
•
Account status inquiries anytime;
24/7 online account access.
Our flexibility allows you to maintain control:
• You select accounts you prefer to
factor
on an invoice by invoice basis.
• You control total factoring costs by only
, factoring on an "as needed" basis.
Up
to 97% Advance Rates:
Advance rates are based on overall risk
associated with a particular industry as
well as experience and track record.
We
hold reserve accounts to accommodate
industries which typically experience
dilution
and that we would otherwise not be able
to service. Advance rates range
from
80% to 97% of the gross invoice amount.
Fee
Structures:
Fees are determined based on your
industry,
the credit worthiness of your customers,
how quickly your invoices
turn, and
monthly factoring volume.
OCF provides individualized customer
service,
by tailoring our flexible programs to fit the individual
needs of each
of our clients. We strive to
be responsive, handling receivables
with speed,
efficiency, and a personal touch.
As a client you are assigned one account
administrator who will personally handle
all of your account activity and
inquiries.
This gives us the ability to buy your r
eceivables and get the money
to
you within 12 to 24 hours.
Having one person look after your account
also
makes it easy for you to decide
which invoices you are going to sell and
when
you want to sell those invoices.
Our funding is
primarily done by
direct deposit or wire.
OCF has more than 70 years of
successful
cash flow and credit management experience,
experience we would love
to put to work for you.
To talk with a member of our sales team,
please contact one of our regional offices at:
Toll Free: 888-266-0197
Fax #: 425-702-1874
On-Line Factoring
Request Form
Email Us
Site Map
We are currently factoring account receivable financing nationwide including the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York,
North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Our Factoring Programs Can Help You Double
Your Sales
Let Us Show You How
To talk with a member of
our sales team,
please contact one of our regional
offices at:
Toll
Free: 888-266-0197
On-Line Factoring
Request Form
Email Us
