“FACTORING RECEIVABLES
OR RECEIVABLES FACTORING:
A SOUND BUSINESS DECISION”
Some people refer to our business
as loan factoring, or accounts receivable loans, but we stress to
our customers that factoring invoices is not a loan. It is a financial
practice that allows businesses to sell outstanding invoices to a factoring
company and immediately improve cash flow. Factoring works best when
a strong partnership is at the core, and since Praxis believes
that every company is unique, and each funding situation special, we
strive to cultivate a relationship with all our clients that lets them
know Praxis is their partner in the quest for success.
Here is how
our invoice factoring services work:
|
First, you initiate a partnership with Praxis by filling out our online pre-approval form.
Within 24 hours of receiving your pre-approval form, and any other required data, we will issue your company
a proposal. It will outline the accounts receivable funding advance, our
fee structure and any other relevant terms and conditions.
You sign our proposal and decide to begin factoring invoices with Praxis.
Our factoring staff begins to conduct due diligence. This action consists of credit analysis to ensure that your clients are credit worthy. During this time, Praxis prepares all documents, assists you in closing our transaction and helps your staff set up your systems to work efficiently.
After you have reviewed all documents, you sign and execute the documents and return them to Praxis.
We countersign the documents that you sent back to us and forward copies back to you. Now the transaction is closed and we are ready to provide you with the working capital your company needs. At this time, you are eligible to take advantage of all factoring services offered by Praxis.
Now the actual accounts receivable funding process begins. You invoice
your customers as usual and then fax a copy of that invoice, with any supporting documentation, to Praxis.
After the invoice is verified, you will receive financing for your receivables immediately. The initial accounts receivable funding amount is usually between 70% and 80% of the initial
face amount of your invoice.
Your customer pays the invoice to Praxis. As a small business, you may elect to
have Praxis manage your collections department in order to concentrate more on your business' core competencies. The service is free to all our clients.
Praxis will send you the balance due
on each paid invoice. The balance due is the invoice face amount less: the invoice financing amount (advance rate), any deductions taken by your client, our fees, and any other costs associated with the invoice.
Send us any new invoices that you wish to factor on any business day. Factor as often and as frequently as you choose, all you need to do is repeat steps four and five.
With Praxis doing your collections work on factored invoices, your company is free to concentrate on the day-to-day aspects of your business. We will send you weekly account activity reports, which will be available 24/7.
|
