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Factoring Fundamentals - Vendor Financing Texas

Factoring is an efficient and reliable way of meeting capital needs of the business. It is beneficial when a business promises to have definite profits in future but faces capital deficit to get the project completed.

Local Companies

1st Commercial Credit
800 450 9653
300 E Main
El Paso, TX

Golden Funding Source
972-293-0115
445 E FM 1382 Suite 3-105
Cedar Hill, TX

Sterling Resource Funding Corp.
832-484-1700
3845 FM 1960 West, Suite 250
Houston, TX

Factor Funding Company
281-208-8100
P.O. Box 35481
Houston, TX

UC Factors
281-438-3877
5090 Richmond
Houston, TX

Lone Star Business Capital, Inc.
713-589-2516
PO Box 7567
The Woodlands, TX

Catamount Funding, Inc.
713.647.8577
11211 Katy Freeway, Ste. 604
Houston, TX

Security Finance Corp
(361) 325-5674
201 W Rice St
Falfurrias, TX

Alliance Shippers Inc
(915) 591-2769
1200 Golden Key Cir
El Paso, TX

Sun Loan Company
(956) 727-8955
616 W Calton Rd
Laredo, TX

Factoring Fundamentals: ( http://www.hjventures.com/factoring/factoring.html ) Principles that govern factoring are same as those governing bank loans, credit cards and other such lending methods. The basics of factoring are divided into two main practices. When a factor purchases an estimated value of the future account receivables it is known as non-recourse factor practice. In non-recourse factoring the factor bears the bad debt risk and the business owner is required to pay interest to the factor for the period specified in the factoring agreement.

The second full-recourse factor practice involves the use of invoice as a security to make a loan. In recourse factoring the factor has recourse to business owner if the concerned customers do not pay. Recourse factoring is cheaper than non-recourse factoring.

How does factoring work?

The first step in the process is to fill the documents provided by the factor and when they get completed the factor provides the business owner with cash against receivables. The factor then pays the business owner a certain percentage of the total value of your invoices. This can be up to 90% of the total value of the invoices. This is paid as soon as the invoices are received, or at the time agreed upon between the business owner and the factor. The process normally takes 24 hours to complete and is either sent directly to business owner’s account or through the mail. Once customers pay up the bills at pre-determined dates lenders too pay up the remaining amount. In the end business owner will also receive copies of customer checks on the date of receipt to keep a record.

( http://www.hjventures.com/factoring/accounts-receivables.html )

Factoring fundamentals once confirmed and acknowledged, are a step towards a stable and secure business, as they help in keeping the working capital needs of the company on track.

Learn more about factoring / business finance : http://www.hjventures.com/factoring/factoring-glossary.html

About the Author:

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard’s business plans have secured several million dollars in funding. For more information: http://www.hjventures.com/factoring/factoring-glossary.html

Article Source:

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Featured Local Company

1st Commercial Credit

Asset Based Lending and Factoring Services available for USA, Canadian and UK Customers.

800 450 9653
300 E Main
El Paso, TX
www.1stcommercialcredit.com

Factoring Credit Lines starting as low as 1.59%. (Monthly minimum Requirements) Asset Based Credit lines available.

Same day approvals for Factoring Receivables.

Industries: Medical, Staffing, Trucking, Construction, Distributors, Manufacturers and Export Trade Finance including Purchase Order Finance and Letters of Credit.

Locations in the USA, Canada and the UK. Export Trade Finance available in over 60 countries and 17 currencies.

USA and Canada 1 800 450 9653

United Kindom 0 800 404 9669

– 1st Commercial Credit UK, London
– 1st Commercial Credit - Canada, Toronto

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