FAQs
Do you buy our accounts receivable?
Yes, but we are not lenders and you are not a borrower. We make an outright purchase of the financial rights to your accounts receivable, called factoring.
What type of receivables do you buy?
Just about any valid receivable for a service performed or a product delivered, including government-related receivables, that meet our basic requirements.
How does the factoring process work?
When you are ready to invoice your customer and turn your invoice(s) into immediate cash, call us. Deliver the invoices with all supporting documents to us along with a Schedule of Accounts (provided by us). We will then mail the invoices and make your advance the same day via check or bank wire. Once we receive payment, we pay you the residual amount (received amount minus your advance and our fee). It's that simple.
What are your requirements for buying an invoice?
- The goods must be received by your customer, or the services must be satisfactorily performed.
- Your customer must be creditworthy.
Do I have to sell all my receivables to you?
No. You choose the invoices to sell us as your cash needs arise. We reserve the right to accept or reject any customer based on their credit history.
How do you collect the payments?
We mail your original invoices to your customers and notify them to pay Exchange Capital.
What's my customer's reaction when I sell my accounts?
No past or current client has ever lost any business because of factoring. Selling accounts receivable is a respected business practice. When you factor with us, we work together with you and your customers.
Most retail establishments factor their credit sales when they accept credit cards such as "American Express", "Visa" and "Mastercard". By factoring, you are leveling your playing field with those establishments.
In addition, you retain all contact with your customer; and the relationship you have developed is not affected. What is affected is the balance of your bank account!
What will it cost me?
A small percentage of the invoice amount becomes our fee when the invoice is paid, and the rest is yours. Our fees are determined by each invoice's days outstanding and are documented in our Purchase and Sale Agreement. We would be happy to discuss with you a fee structure suitable for your business.
What financial limitations are placed on my company?
None. Exchange Capital Corporation is well capitalized, so you can grow as you desire.
Are there any geographical restrictions to your service?
We will work with any United States firm that is invoicing another credit-worthy U.S. firm or government agency.
Does factoring make good business sense for me?
It has made sense for thousands of firms for hundreds of years. Use factoring when your cash flow threatens to dry up due to slow-paying customers. Our factoring system is an excellent source of cash. Our program:
- Unfreezes your accounts receivable, turning them into instant working capital
- Assures you of a continuous source of operating cash
- Allows you to protect and improve your credit rating
- Enables you to fully develop your growth potential
