“When presented with this useful business solution, many persons are not familiar with what the concept of factoring entails”, explains Paul Dijkhoffz who is responsible for Business Development in the Northeastern Caribbean for FactorPlus. Factoring, also known as Accounts Receivable purchasing, is a financial service that allows you to turn your invoices into immediate cash, enabling you to fund your business operations with adequate cash without putting up traditional collateral. It also transfers the majority of the credit risk to the factoring company.
How does it work? You sell your invoices to the factor (in this case, FactorPlus) and you will receive an advance amount immediately. This advance is often 80% of the invoice value, depending on the specific situations and the industry. Once the receivable is collected by the factoring company, you will receive the balance minus the factoring fee.
Factoring is typically accompanied by a collection service, thus relieving you of all the collection and payment processing burdens after invoicing.
FactorPlus accepts most invoices, as long as they concern business-to-business or business-to-government invoices. Instead of focusing on financial statements, which is the standard procedure when you apply for a traditional loan, FactorPlus focuses on the creditworthiness of a debtor (your company) and the invoicing process. FactorPlus assess the debtors before deciding to buy the invoices. Based on this assessment, FactorPlus may opt not to buy certain invoices in some cases.
The key advantages of factoring are:
1. Cash flow within 48 hours.
2. Credit risk is assumed by FactorPlus for 80% of the invoice value.
3. Collection/Debtor management and picking up checks will be taken care of by FactorPlus.
4. No collateral required (mortgages or other general guarantees).
5. Client can focus on their core business.
FactorPlus, incorporated in St. Maarten in 2010, was established on Curaçao in 2006 and has been helping large, medium-sized and small companies to manage and control their businesses with non-recourse factoring. The company is an active member of The International Factoring Association (IFA) and the International Factors Group (IFG), an important knowledge center for international factoring developments. FactorPlus has offices on Curaçao, Bonaire, Aruba, St. Maarten and Miami.
For more information about factoring, a personal presentation or a non-binding fee proposal, contact Paul Dijkhoffz at firstname.lastname@example.org