#1 Rated Virginia Factoring Company
Servicing Tidewater including Virginia Beach, Norfolk, Richmond, and Petersburg
Benefits of Factoring – Payment for Invoices and Purchase Orders
Payment for Invoices: If your business is in need of cash (business capital) while you’re waiting on outstanding invoices to be paid, we can get cash for your business today. We will pay cash for your unpaid invoices. Accounts receivable factoring (receivables factoring) is a great form of financing for businesses in need of cash. Get the cash you need today to help meet payroll expenses, grow your business, and improve cash flow.
The approval process is simple:
We look at the goods or services that you provide along with the client that you are providing goods or services to. We then determine if your invoices can be factored for funding. The only thing we need to confirm is that your client agrees that the invoices have not been paid but will be paid.
It’s that simple.
Speed – Funding within 24 hours of approved invoices – you don’t need to wait to get paid.
Cost-effective – No need to factor all of your receivables. You pick and choose.
Personal – Great Customer Service
Time Sensitive Control – Fast Funding
Wouldn’t it be great if there was a way for your business to have the capital it needs to ensure smooth operations on a daily basis. With invoice factoring, this is possible.
If you’re a business and you’re in need of cash while you’re waiting on invoices to be paid, we will pay you cash for your unpaid invoices.
What is Invoice Factoring?
Invoice Factoring is a financial transaction in which a business (you) sells its accounts receivables (invoices) to a third party (Cox Financial) at a discount. A business will sometimes factor its invoices to meet its present and immediate cash needs.
There are two types of invoice factoring: Recourse and Nonrecourse
In nonrecourse invoice factoring, a company sells its accounts receivables to a factor, who then supplies the cash needed to cover the invoices. The difference with nonrecourse factoring, as opposed to recourse factoring, is that the company has no liability with any uncollected invoices. The factor absorbs all the risks.
Invoice Factoring Utilization and Industries We Serve:
Government Contract Factoring
Oil and Gas
Purchase Order Financing
What is Purchase Order Finance (PO Financing)?
Purchase Order Finance is an accounts receivable finance solution in business finance that provides cash strapped businesses with cash to complete customer orders. PO Finance is the perfect funding solution to growing companies.
Which factoring company is the best?
There are a multitude of factoring companies to choose from when considering invoice factoring. A few things to consider are: recourse vs non-recourse factoring, what industry does the factoring company service, are the rates competitive, are there invoice minimums, speed of funding, and customer service. Consider a company who will provide you with a dedicated account manager. Competitive in all categories, Cox Financial is voted #1 in Virginia.
How is factoring cost calculated?
Factoring cost is determined by your industry and client’s credit worthiness. You can typically expect 70% – 95% advance rate with 1.15% – 3.5% interest per 30 days.
What does a factoring company charge?
Factoring companies charge by offering you an advance rate on your invoice, typically advancing you 70% to 95% of your invoice total, depending on your client and industry. Most commonly in factoring, this advance rate is 80% – 85%. In construction, this rate is typically 70% due to risks. After providing you with the advance, the factoring company charges a monthly rate of 1.15% – 3.5% per 30 days.
How much does factoring invoices cost?
The cost of invoice factoring is determined by your industry and the factoring rates are typically 1.15% to 3.5% per 30 days. So, a net 60 invoice of $100,000 where you were advanced $70,000 will cost $4,900 if paid in 60 days at 3.5% per 30 days.
How much does invoice factoring companies charge?
Factoring fees vary by industry. For the most part, the pricing you get is based on the volume of invoices you plan to factor, the average size of your invoices, and the credit worthiness of your clients. On average, you can expect rates in the range of 1.15% to 3.5% monthly. Look out for hidden fees when selecting a factoring company to work with.
Is Invoice Factoring a good idea?
As your business grows, so does your need for funding. There are many types of business owners who attribute their success stories to factoring. As a business owner, you may be faced with business finance issues including a maxedout line of credit, slow paying customers who take too many days to pay, and bank turndowns for business loans. Being denied bank loans business lines of credit leaves very few options for funding. This is where invoice factoring is a great funding solution to problems with cash flows. Factoring companies benefit cash flow and business growth. Let Cox Financial be the factoring solutions company you trust for your receivable financing today.
Is a credit check required for invoice factoring?
If you are considering factoring your invoices, you do not have to worry about credit checks since you are not the party responsible for payment. However, your customer credit history is considered for credit risk.
How do you get approved for funding?
Getting start is easy. We have a very simple factoring process. First, we look at the goods or services that you provide along with the client that you are providing goods or services to. Using that information, we determine if your invoices can be factored for funding. If your client agrees that you have provided the goods or services as described on the invoice and agrees to pay, then we can give you cash for that invoice.