A/R Factoring is a highly recognized form of Funding, used to create leverage in your cash flow cycle, you get paid immediately, while your Funding Partner waits the 30, 60 or more days for Customer payments to arrive. This immediate cash flow boost provides the necessary working capital to cover payroll, operating expenses, and other right now costs, setting the stage for business growth. GMFC offers competitive rates and advances, on your Trade Accounts Receivable Invoices. We work with most industries and you can expect set up and approval in our system within a few days following your on-line application.
How A/R Factoring works:
A/R Factoring is the process of selling your Open Trade Accounts Receivable Invoices, and while you receive immediate cash, Electronically, between 80% – 90% – GMFC does the waiting to collect those payments direct from your customer, as your receivable management partner. The GMFC program is simple, easy to use, with Funds transmitted to you in 24 – 48 hours, following submission.
Normally you would submit a Schedule, (either a single customer invoice, or a group of customer Invoices, perhaps across multiple customers), that is within your available funding account balance. As each Schedule is Funded, a Schedule Reserve Account is created, representing the difference between your advance deposit and the Gross Schedule Dollar Value.
A Two Step Funding Process:
Step 1 – The first electronic deposit to your bank account, calculated at the contracted advance rate, is completed once you have submitted your Schedule to GMFC, with all invoices verified. The Reserve Account is Created Here.
Step 2 -The second electronic deposit to your bank account is made once each Schedule is fully collected and all Customers payments are received by GMFC. This deposit represents the Reserve created in Step 1, less all discount rates earned by GMFC per the agreement covering the Schedule.
Example:You submit a Schedule to GMFC of $100,000.00. Upon verification, GMFC, will advance say 85%, $85,000.00, of the Schedule, via electronic deposit to your bank account, in 24-48 Hours. GMFC, as your receivable management partner, then waits to receive full payment of each invoice on the schedule. The Reserve Account Balance of $15,000.00 is created here.
Once each Invoice on the Schedule is fully collected, the Schedule is Closed, The Reserve Account Balance, ($15,000.00 less the GMFC Earned Discount) is electronically deposited to your account. This refreshes your available funding balance per the master factor agreement.
Higher Factoring Advances Affordable Costs:
Under certain conditions, GMFC could advance up to 95% for your first installment depending on your industry and credit profile of your client. Factoring Discounts range between 1.5% to 3.5% per month. The individual rate is a combination of the credit quality of your customer, coupled with your advance rate.
Immediate Cash Access
Gives you Immediate Access to your cash, while GMFC, your Receivable Management Partner, waits the 30, 60, or 90day term of your customer Invoices.
Working Capital Credit Line
Available to small business’, with limited or no working capital credit line.
Improve Cash Flow
Improves your cash flow dramatically.
Not A Loan
Not a loan, therefore, debt ratios for bank evaluation are not an issue
Leverage Working Capital
Leverage available working capital, to cover payroll, operating expenses, and other right now costs, setting the stage for business growth.
Grow your business and expand market share.
How to Qualify and Obtain A/R Factoring with GMFC
Qualifying for A/R factoring with MFC is quick and easy!
New GMFC Clients simply complete our online application or Call 734-244-5535 and we’ll get you started.
The time between application and approval can take as little as a couple of days, longer depending on response time from your presented customer base.
Additionally, your company should:
Have Available Current Financial Statements, Filed Tax Returns, and Payroll Tax Reports.
Be Free of legal issues affecting Customer invoices and cash flow.
Have unencumbered Customer Invoices.
Be Free of Tax Lens, or now or willing to work out a payment plan with Government Agencies.
Be Selling to Commercial or Government customer base.