The only requirements are for business owners to have sales invoices and customers that owe you money.
Step I |
For immediate cash you simply send your invoices to Competitive Factors instead of sending the invoices to your customers in the hope they will pay you on time.
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Step II |
Competitive Factors will process your invoices paying you up to 90% of the total approved invoice amount into your bank account. |
Step III |
Competitive Factors stamp the approved invoice with the Competitive Factors notice of assignment and forward the invoice to your customer for payment. |
Step IV |
After Competitive Factors receive payment for the invoice Competitive Factors then pay the retention balance of the invoice (final 10%) into your bank account.
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As part of our service Competitive Factors will arrange a notification advice to your customers that your sales invoices have been factored with Competitive Factors.
Remember Competitive Factors provides immediate cash for your invoices “as and when you need” basis with no set up fees or hidden costs.
Please Note:
You do not loan or owe the money back to Competitive Factors Limited once you receive the cash from Competitive Factors Limited for your factored invoices unless your debtor fails to pay Competitive Factors Limited in full after the 90 day factor period.(The factor period is normally based on past payment history)
An agreed daily charge is payable on outstanding invoice amounts or payment of the invoice that is disputed (similar to an interest charge on a bank overdraft) after the factor period has expired and prior to repurchase (where you must buy the invoice back) after the 90 day factor period. This charge would cover administration, management and finance charges.
Credit criteria must still be undertaken on your debtors before you considered factoring your invoices with Competitive Factors Limited.
Your factored invoices are subject to full recourse factoring whereby you are ultimately responsible for any bad debts.
Notice of Repurchase of your factored invoice is required by you in the event that the debtor fails to pay Competitive Factors Limited within the 90 day period from the date of the Entitlement Contract (Notice of Assignment) together with any interest payable. If you agree the amount can be deducted from the retention release or where there are any other complications
Competitive Factors Limited can provide for non factored invoice where funding is not given due to the age of the invoice or the particular debtor is considered not worthy of the credit risk.
Competitive Factors Limited legal costs are to be reimbursed (if required)
Right of set-off of all liabilities can be exercised by Competitive Factors Limited and a contra arrangement can be made where there is an evident problem.
Remember … Our rates are competitive.
