Contact Address

Administrator
Toronto, Ontario, Canada,
Williamsville, New York, USA
CONTACT NO.: 877-908-3868
EMAIL ID: info@theinvoicexchange.com
WEB SITE: http://theixe.com

FAQ

How does a factoring company differ from a bank?

Banks examine a company and its personal guarantors in depth. This examination usually requires three years of financial statements, a cash-flow analysis, and collateral appraisals. It can take weeks (and sometimes months) to complete. And, if a business is lucky enough to obtain a line of credit, that line is typically for a fixed amount. This finite borrowing capacity often limits the growth of that company. By contrast, our affilated funding sources focuses primarily on the credit-worthiness of a company’s customers. Funding is based upon the strength of the customers. This allows a factoring company to fund start-up businesses and other rapidly growing companies that often find themselves unable to get the hoped-for cooperation from their local bank.

Is factoring the same as a loan?

No. A loan is an extension of credit with an interest rate and a specified payback schedule. Factoring is the purchase of invoices at a discount.

Wouldn’t a bank more sense?

Possibly but, the credit crisis and financial meltdown has made it virtually impossible for small to mid sized businesses to obtain traditional forms of financing. However, If a company is able to obtain a line of credit that is large enough to support its growth, then, yes. But most banks won’t provide a large enough line to support high growth businesses. If you are experiencing a steep growth curve, factoring can provide the cash flow you need to support inventory purchases, payroll, marketing and working capital.

If I have another lender in place can you still help?

Yes. we will either buy out the other lender’s position, or negotiate an inter-creditor agreement with them.

Why haven’t I heard about Factoring before?

To many, factoring is the best-kept secret in financing. In fact, today, more than $70 billion is factored every year across North America. And although it may sound like a new concept, it actually dates back to the 1700s. Factoring is quickly becoming the financing tool of choice due to the recent bank meltdown

What types of companies use this type of financing?

All types. Any company selling business-to-business or business-to-government potentially qualifies for factoring

How will my company benefit from factoring?

Two words: Cash Flow. InvoiceXchange can help transform your company into a cash business. As soon as you generate an invoice, you can get paid. Your company’s growth will not be stunted because you do not have sufficient working capital.

Do you offer credit services?

Yes. No more “ship and hope.” Our factors can act as your own outsourced credit department. Our credit collection services will help you speed up collections and control bad debt. How quickly can I get funded? An initial approval can be received within 48 hours days. Subsequent funding requests are approved in 24-48 hours.

Do you work with new start up companies?

Absolutely. Our company specializes in helping companies of all sizes grow and prosper.

If a company has gone through bankruptcy can you help?

Yes. InvoiceXchange routinely assists companies in these situations get back on the road to profitability.