What is factoring?
Factoring is the sale of commercial accounts receivable or invoices by a business. The factoring company typically advances between 80% and 90% of the gross invoice amount to the customer, providing immediate and predictable cash flow. Once the factor receives payment on the factored invoice, the portion not advanced to the customer less the factoring fee is returned to the customer in the form of a reserve return. Reserve is returned to the customer on a weekly basis.
Do I need factoring?
We have years of experience in our industry and have served hundreds of clients. We can answer your questions and quickly determine if factoring is right for you. If it isn’t we will try to help you find an alternative that best fits your credit needs.
What if I have bad personal credit?
Rather than your own personal credit, it is the creditworthiness of your customers that we focus on. The stronger your customer, the more credit we can extend.
How do I get started with Caprock Funding?
Start by calling Brad or Robert directly at 713-364-5550 or by downloading our application (insert link here). You can email (insert link here) or fax the application to 800-664-5164. Each credit request is unique and we look forward to working with you.
Is Caprock Funding a direct lender?
Yes. Caprock Funding is not a broker. We originate, fund and service your factoring line.
How long is the application process?
We will respond to your application or call the same day. First funding can often occur within a few days if necessary.
Do I have to sell all of my invoices?
No. There is no minimum amount of invoices you must sell to Caprock Funding. You factor only what the needs of your company dictate.
Do my clients continue to send payments to my company?
No. We require that the checks are sent to our PO box since the accounts have been legally sold.
What does it cost to factor my invoices?
Fees can be as low as 0.75%. Costs are determined by invoice payment cycles, your customers’ credit strength and estimated monthly volume of factoring.
What happens with my customers if I factor?
We have years of experience working with small and large customers and understand the importance of maintaining your strong relationships. Our staff prides itself on customer retention largely due to our professional and helpful interactions with our clients and their customers. We also assist you by identifying possible returns and disputes as well as confirming that goods or services have been delivered and received to everyone’s satisfaction.