What is accounts receivable?
Accounts receivable is the amount owed to a company resulting from the company providing goods and/or services on credit. The term trade receivable is also used in place of accounts receivable. The amount that the company is owed is recorded in its general ledger account entitled Accounts Receivable. The unpaid balance in this account is reported as part of the current assets listed on the company’s balance sheet.
What does Capitol Credit Do?
Along with our partners, we provide financing for small- and medium-sized companies that need additional working capital. The financing provides your company a steady cash flow, which will enable you to grow and prosper.
How do we use your accounts receivables to do it?
• We purchase your commercial accounts receivable, giving you cash in 24 hours or less.
• We provide credit checks on your current or potential customers.
• Our professional accounts receivable bookkeeping and collection services are part of our total financing program.
What can factoring your accounts receivable do for you?
• Accelerate your cash flow.
• Improve credit rating; increase purchasing power.
• Increase production and sales.
• Most importantly, it enables your company to GROW.
Who needs factoring?
• Companies that are growth-oriented.
• Companies that may not qualify for bank financing.
• Companies that are young.
• Companies with tax problems.
• Companies without strong balance sheets.
What amount of accounts receivable would qualify for factoring?
If your company sells a product or provides a service to another business, America’s Factors has programs to fit your individual needs.
How are fees determined?
The fee is based, not on the strength of your company, but rather on the quality of your accounts. Therefore, the cost fluctuates according to the credit worthiness and performance of your receivables. When compared to both the cost of maintaining receivables for 30 days or more and the administrative expenses associated with collections, factoring is a prudent business strategy. Many clients use this as a discount, allowing them to offset the factoring fee and work with America’s Factors at a minimal cost.