Accounts Receivable funding (Factoring) is designed for businesses that want to improve their cash flow by not waiting 30,60, 90 days for a customer to pay. Factoring is used in almost every industry today that sells business-to-business or business-to-government.

What exactly is Factoring?
Factoring is not a loan and differs from borrowing in that your A/R (invoices) are sold at a discount rather than merely offered as collateral. It's the same concept as offering a discount for early payment of your invoice (1% 10, Net 30 days), only now you get the money in 24-48 hours and it doesn't depend on if your client wants to pay early.

New businesses and fast growing companies have a huge demand for cash. And chances are their A/R is growing faster that their cash flow. Until growth levels off, they can never catch up!

What are the advantages?
  Fast & Easy - Initial funding in 5 - 10 business days
  Ongoing fundings can be done in 24-48 hours
  Based on your customer's creditworthiness - not yours
  No long-term contracts are required
  Flexible - you choose which invoices you offer for sale
  You can use the money however you want
  Unlimited source of operating cash - grows as sales grow

How does it work? Once your account has been opened, the following steps are the typical scenario:
1.	An invoice is created for goods or services delivered.
2.	A copy of the invoice is submitted via fax or email.
3.	The factor makes sure your customer is creditworthy, willing and able to pay the invoice when due.
4.	Cash advance (usually 70 - 85%) is wired to you. (Note-your cash advance percentage will be pre-determined with quote)
5.	Factor does administrative work of collecting payment.
6.	Payment is remitted to factor when due.
7.	Balance is remitted to you, less the discount fee. (Note-your discount fee will be pre-determined with quote)

What does it cost?
Discount rates and advance amounts are established by a combination of the following: monthly volume, your customer's credit worthiness, invoice sizes, and average payment cycle. 

Other normal charges may be credit reports on clients and bank wire transfers.

Still have questions ... Frequently Asked Questions

If you are ready for a quote...let's get started



View and print our Factoring Application Form:
  Click Here for Adobe pdf version:  Factoring Application
 Click Here for Microsoft Word Version:  Factoring Application

	Fountainhead Funding Phone:        727-573-5533 Toll Free:    800-663-7517 Fax:            727-299-9034 611 Saxony Blvd. St. Petersburg, FL 33716 www.fountainheadfunding.com
Member of the American Cash Flow Association