Information on Factoring, How, Why, When

Factoring Information

Click here for information on Purchase Order Funding

The financing program is structured as a loan, not a purchase of receivables, a common practice in traditional factoring. You can borrow from $250,000 to $3,000,000 against your accounts receivables. As in bank lending, interest fees are tied to the prime rate listed in the Wall Street Journal.

Invoice Factoring, known as accounts receivable - factoring is the selling of your accounts receivable for cash versus waiting 30-60 or 90 days to be paid by your customer. Factoring will get you the working capital you need now and improve your cash flow. You can be advanced up to 92% against the invoice you generate and will be paid the remaining balance, less the fee of 1.5% when the invoice is paid. All fees of this nature are tax deductible. No upfront fees.

Many small to medium size companies use "factoring" to stay on top of cash flow issues. A Broker can usually get you a better rate because Financial companies understand that a Broker will move the business around unless the rate is good. The Financial Company pays the Broker, there is never an additional cost to you the client.

Frequently Asked Questions

How does A/R Financing and Factoring work?
When you provide us with copies of your invoices, after you ship your goods or services, we use them for a loan to your company. Within hours our financial backer will send you a check, or bank wire funds directly to your account, so that you can start enjoying the proceeds of your hard work. It's that simple!

Does your company need good credit?
No. Since you are using invoices as collateral, and we loaning on those invoices, we are not concerned with your credit rating or balance sheet. E-Z Application

How fast can I receive my money?
In most cases we can issue bank wire or a check the same day you deliver the invoice to your customer.

Are there a lot of papers and long-term contracts to fill out?
No. There are only a few papers to complete, and they are signed in your office in less than 15 minutes.

What if just opened our business?
As long as you are selling to reputable companies, we will finance your invoice, even if it id the first order your new company has shipped.

Do I have to finance all of my invoices?
No. You decide how much CASH you need and how many invoices you want to put up for collateral.

Will A/R Financing enable me to increase my sales?
In addition to improving CASH flow for hundreds of companies, we have worked successfully with many suppliers to secure credit terms. This has enabled our clients to get the products they need to complete their own orders.

Do you Do other Financing businesses?
Yes. We do Equipment Leasing, Equipment Leaseback's, Letters of Credit and PO Financing.

Can you provide other services in addition to FINANCING my invoices?
Yes. we can be your very own credit department. We can give you national access to Dun & Bradstreet and TRW to provide a professional credit analysis of your customers before you ship. In addition, being fully computerized, we have the ability to send your customers monthly statements to help you collect your funds.

Who collects from the customer?
That is entirely up to you. In most cases you keep control of the collection process with your customer. But in some cases we will discreetly assist you with your collections, giving you access to our credit department at no additional charge.

Can you protect me if any customer does not pay my invoices?
You may elect to take advantage of our credit insurance division on any invoice you choose. This enables you to pass the full credit risk to us should your customer not pay

TWT is a Broker for Accounts Receivable Financing & Purchase Order Funding. We Broker to reputable, reliable and licensed Financial Institutions who pay us a Fee for Services.