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Factoring FAQ
The following questions and answers will
provide you with an understanding of invoice factoring, what it is, how it works, and how your company can begin
this funding process to enhance your working capital and cash flow. Contact: Coyote
Capital in confidence today to see how we can assist you with factoring services.
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We provide AR Factoring in Oakland
- We provide AR Factoring in San Francisco
- We provide AR Factoring in Monterey
- We provide AR Factoring in California
Visit our other locations:
- www.ar-factoring-mi.com (ar factoring in Michigan)
- www.ar-factoring-arizona.com (ar factoring in Arizona)
What is Factoring?
Factoring is the purchase of valid Commercial Account Receivable [AR] (invoices) for cash.
I thought factoring was used only by companies in financial
“trouble”?
Factoring
gives your business the power to grow, without giving away equity or taking on debt. Contrary to what you may have heard,
factoring is NOT a tool used only by struggling companies. Financially smart companies use factoring as a powerful
tool to release capital tied up in account receivables.
How is factoring different from a loan, say from a bank? Do I have to sign
a Personal Guarantee?
Factoring
is not a loan; it is the process of purchasing valid Commercial Account Receivable [invoices] from your business at a small
discount. Unlike most banks and other factors, there is NO personal guarantee required with our professional funding services.
Does my business qualify for factoring?
Almost every business can qualify. Our guidelines are very
simple: if you have account receivable, due to a sale in a business to business transaction, you may qualify. Any size invoice
can be funded, provided the service you offer, or the product you sell has been completed and delivered.
Don’t I have to be in business for 3 years or more, like the Bank said?
No, Coyote Capital has very successfully funded many startup businesses. We fund from start ups to more than $2 Million a month
in sales for clients nationwide. We also have successfully funded many Certified Minority Contractors.
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Do
I have to factor all of my Invoices?
No! Unlike most other factors, you remain in control by picking which client and which invoice
to factor. Our pricing is duration based, so you only pay for the funding you use, when you use it. In fact, you can factor
only a “larger” account, if you desire. We have flexible debtor concentration policies.
Are there any minimum volume requirements?
There are no monthly, quarterly or annual minimum volume requirements. This
allows you maximum flexibility and ensures you only pay for the funding you actually use.
Do I have to pay an Application Fee? Start up fee? Documentation fee?
Closing costs?
No. Coyote Capital does not have the typical fees found elsewhere. There are no application fees,
start up fees, documentation fees, or closing fees. With Coyote Capital there
are NO hidden fees of any kind.
What information do you need to start funding process? What does it cost to apply?
Click here to see our simple and “user friendly” online application or call us and we can fax you an application. It usually
takes less than 5 minutes to complete the application. We will also need a current AR aging schedule with a signed application.
We will respond with an answer usually the same business day we receive our quick application from you.
How are fees calculated?
As a general rule, we advance 80% of the AR that we purchase, with the balance
[less the professional fee] paid at collection. We structure our professional fees on a 5 day pricing window, not an industry
standard 30-day term. This is more equitable fee structure for you. There are no hidden expenses. Most factoring companies
charge additional fees for credit reporting, telephone calls, reports, etc. These hidden charges can understate the real cost
and have a large impact on your true cost.
How long is my contract for? Is there a penalty if I would need to stop factoring?
Our Agreements typically have a one year term. There are
no “exit” penalties or liquidated damage clauses as part of our Agreements.
How can I receive more information on the professional factoring
services provided by Coyote
Capital?
We can be reached via email at info@coyotecc.com or by telephone at (866)
646-6493. Or, you can visit our factoring web site for more information about factoring as well as other services that we provide.
Call our Consultants to see how we can help your business grow with an
unlimited amount of cash through factoring.
- We provide AR Factoring in Los
Angeles
- We provide AR Factoring in Santa Barbara
- We provide AR Factoring in Anaheim
- We provide AR Factoring
in California
Visit our other locations:
- www.ar-factoring-mi.com (ar factoring in Michigan)
- www.ar-factoring-arizona.com (ar factoring in Arizona)
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