“HOW BUSINESS FACTORING,
BILL FACTORING OR CASH FLOW FACTORING
WILL AFFECT MY BUSINESS”

How quickly will I receive funding?

A. Praxis funds all verified invoices submitted from approved debtors within 24 hours of receipt. If the account debtor has not been pre-approved for purchase, we try
to fund those invoices as fast as possible, usually within 48 hours. This kind
of quick turn around is the reason many businesses choose Praxis over other factoring companies.

How are the fees for the factoring services determined?

A. Fees vary from factoring company to factoring company, and from bill factoring client to bill factoring client. The fees are determined by the creditworthiness of your client base, average payment cycle, invoice size, factoring volume and some other variables. Therefore, the cost fluctuates according to the quality and performance
of your accounts receivable. When compared to both the cost of maintaining receivables for 30 days or more and the administrative expenses associated with collections, cash flow factoring is a prudent business strategy.

Do I need to sell all of my invoices?

A. No. You decide which invoices you wish to submit for cash flow factoring in order to successfully manage your financial needs.

How long must I factor my invoices?

A. Our standard term is one year. However, during this time period we do not require that you factor all your invoices. Our agreement simply states that if you are going to factor any invoices during the term of our agreement, you must factor them
with Praxis.

Who is responsible for collections?

A. Praxis encourages you to actively participate in the collection process but understands that in order to reduce cost you may elect to have us monitor and independently pursue factored invoice collections. This partnership will free you
to pursue the important sales and marketing activities needed to run a
successful business.

What reports will Praxis provide me?

A. We provide you with status reports on each invoice we've purchased (e.g., which ones have been paid and when, which ones are still outstanding, the balance in your reserve account, etc.). You also receive weekly reports describing your over-all position with us and the status of your settlement account. You will be able
to access these reports 24 hours a day.

How long will the business factoring process take to get started?

A. Once Praxis has received all preliminary information about your company,
we immediately make the determination if we can or cannot help you. Within
24 to 48 hours after receiving all information, we can issue a proposal. If you accept our factoring proposal, Praxis conducts due diligence and completes all documentation. Generally, cash flow factoring begins immediately after you sign
the agreement.

What is the difference between factoring invoices on a "non-recourse" basis and factoring invoices "with recourse"?

A.When an invoice is factored on a "non-recourse" basis the factor takes the credit risk of the account debtor, thereby protecting the client from credit loss. When
an invoice is factored "with recourse" it means that the client is ultimately responsible for payment, regardless of whether the account debtor pays. “Non-recourse” factoring can be more expensive than “recourse” factoring. At Praxis,
we offer both “non-recourse” and “recourse” factoring at rates that are affordable
to you.

Can you supply me with references from existing cash flow factoring clients?

A. Yes. Praxis is proud of the services it offers and is more than happy to provide references once we have received a completed application package.

How will I know the status of my factored invoices?

A. Praxis is pleased to present our Online Account Management, or POAM. POAM allows you to securely access your complete account history in real time using the Internet at any time day or night.  In addition, you will be assigned to a professional Client Services Manager who will be your direct contact for any questions you
may have.

How do I receive the money from my factored accounts?

A. Praxis can wire funds directly to your bank account, send a check through
an overnight service or send a check via the U.S. mail.

When is business factoring not a good fit for a business?

A. Business factoring is generally not a good fit for businesses running on low margins (less than 10%), or cash rich business free of cash flow concerns.