Factoring Service

CAN YOUR BUSINESS BENEFIT FROM FUNDING?

What does it cost?  Practically nothing when you consider how much is lost having to wait 60-90 days to get paid on services or products which you have already provided or paid for. This money could be placed in an interest bearing account or be reinvested into your company to help it grow and produce additional revenues. And, keep in mind that Bridgeport Capital Services will take over all your labor and other costs for debt collection and credit administration, leaving your employees free for other tasks-or allowing you to cut staff and costs. Think a moment about the discounts your supplier's offer for quick payment and what those discounts would amount to in a year. What does it cost to pay your staff to send out invoices, deposit checks, log payments, produce reports and handle collections? How many personnel hours does all this require?

Professional collections.  Bridgeport Capital Services can handle collections (at your request) more professionally and more productively than you can so you can eliminate the overhead cost associated with having someone internally handle collections.

Invoice processing. Bridgeport Capital Services will handle much of the work associated with processing invoices, including mailing them to customers (addressing envelopes, stuffing them, paying for postage), posting invoices to a computer system, depositing checks, entering payments on the computer, and producing regular reports. Again, you can greatly reduce your current overhead cost associated with these tasks.

Offer credit terms to customers.  With Bridgeport Capital, you can offer credit terms (or extended credit terms) to your customers without negatively impacting your cash flow. You can grow your business by making it easier for your customers to buy from you.

Unlimited capital.  Factoring is the only source of financing that grows with your sales. As sales increase, more money becomes immediately available to you. This allows you to constantly be able to meet increasing the increasing demands within your industry.

Take advantage of early payment discounts.  Invoice factoring will allow you to take advantage of early payment terms offered by your suppliers. If you can save two percent of your raw materials cost because you have the cash to pay the bills within ten days, then you can use those extra savings towards other areas of your business.

Invoices are paid faster.  Many people don't realize that some debtors pay factored invoices faster than non-factored invoices. The reason is that factors may report payment experiences to Dun & Bradstreet or other credit agencies, and most clients do not. A debtor who is aware of this knows he may impair his credit rating by paying a factor slowly, whereas paying the client slowly may not affect his credit rating at all.

Credit screening.  Bridgeport Capital Services will provide you with credit information on new customers, which enables you to make better credit decisions. Bridgeport Capital Services will also provide ongoing credit monitoring of existing customers to make sure there is no significant diminution in their credit status.

Factoring helps build credit.  Once you begin factoring and you have adequate cash flow, you can begin to pay your bills in a more timely manner and start establishing, or improving, your credit. This improves your chances of getting credit terms from suppliers and improves your chances of getting conventional financing in the future. We can even work with you if you have tax problems or are in bankruptcy.

Leverage off your customers' credit.  A company does not need to be credit worthy to factor. You don't need to be profitable or in business for at least three years or meet any of the other assorted credit criteria required by banks and other commercial lenders. If you have credit-worthy customers, you can get financing through Bridgeport Capital Services.

Detailed management reports.  Bridgeport Capital Services provides you with detailed management reports enabling you to better run your business and manage your cash flow. You no longer have to pay someone internally to produce such reports.

Financial Flexibility.  Bridgeport Capital Services Group can work in conjunction with your other lenders if they are not providing you all the money your business needs.

THE FUNDING PROCESS

• You choose the customer invoices you wish to factor.
  All we need is the business name, address, and amount you want to factor for a particular business client.  Credit is verified and limits are established for your business client.  There is no charge to you, for credit validation.

• You send us the invoices to have Factored.
  Send your original invoice to us, as well as, any documentation from your business client stating receipt of goods/services.

• We verify that your business client received the goods/services rendered.

• We advance funds by wire directly to your business banking account.
  These funds are yours; immediately available for any purpose you desire.  The amount of the advance funding is dependent on the terms agreed upon when you signed up (factoring fee). Normally, this would range between 80 to 90% of the invoice amount.

• We send your invoice to your business client.
  In most cases, we contact your business client by phone, fax and/or email in advance,  We inform them that we have been authorized, on your behalf, to collect payment on your invoice. We send the invoice to your customer with our payment address.  We may affix our company logo and/or stamp to the invoice for proper identification, along with instructions for your customer to make payment to us.

• Payment from your customer is received.
  Once full payment is received (when due) from your business client, you receive the remaining portion, which equals Full Payment received by us less your advanced funding and the factoring fee.
   
• Flexibility and Control - tailored to your needs.

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