If we can't get a loan at a bank, how can you provide money for my small business?
A bank makes a loan based on the credit-worthiness of the business or individual requesting the loan. If your company is new or you do not have a high personal net worth, it is difficult for a bank to secure a loan without any kind of collateral.
However, as a startup and small business factoring company, we examine your business's customers for our credit decisions. If you are selling to credit-worthy customers, we can purchase your accounts receivable from your business. Selling your accounts receivable generates cash flow to keep your business' vendors satisfied, and, as a result, it also provides your small business with the funding it needs to sustain growth.
How does American Commercial Capital, LLC, make money?
We get a fee when an invoice is collected. Remember, we buy - we do not lend.
Can you give me an example of how your program works?
When you're ready to invoice your customer, fax us an invoice purchase request. Send the invoice(s) and all supporting documents to our office ready for mailing. We process the invoice(s) for your approved customers within 24 hours, then we advance you 70% to 80% of the invoice amount. When we collect the invoice(s), we send you the remaining 20% to 30%, less our fee. Review how factoring can benefit small business for more details.
How do you collect?
You notify your customers to mail all future payments to American Commercial Capital's collection lockbox.
What are your requirements for buying an invoice?
We have two simple requirements for buying an invoice:
- All products, goods and services must be completed, delivered, accepted and approved.
- Your customer (who is being invoiced) must be a credit-worthy risk.
Does small business factoring make good sense for me?
Factoring makes sense for growing businesses with good profit margins that are unable to obtain traditional bank financing. Small business factoring should provide a means for paying your employees and vendors on a timely basis, allowing you to begin work on new sales orders that would otherwise lack the necessary working capital to finance. More completed sales orders means more money for you and your business.
What happens if my customer never pays you?
If your customer goes bankrupt within the first 75 days after the invoice is purchased, we assume the loss of the funds we advanced to you. After 75 days, or if your client doesn't pay because of a dispute with you, then you must repurchase your invoice from American Commercial Capital.
What documents are needed to start receiving small business factoring services?
You will need to provide the following:
- Completed application
- Financial statement
- Copy of your articles of incorporation, partnership agreement or DBA filing.
- Accounts payable aging
- Accounts receivable aging
- Customer list
- Personal financial statement of the owner(s)
- Driver's license of the owner(s)
- Resume of owner(s)
Learn more about increasing the cash flow of your small business by filling out our free quote form!