What is Factoring?
Factoring is a process whereby you sell us an account receivable (an invoice) and we pay up to 80% of the face value of that invoice in cash to you. When we get paid by your customer – we send you the balance, less our fee. It is a very simple process.
How Are You Different?
EBF has designed a bespoke factoring program on a non-notification, or confidential, basis. Your customers continue to pay you, not EBF. All payments flow through a controlled bank account in your name.
This may be critical for clients who:
Do not want their customers to know they are factoring, especially if they are facing financial challenges.
Selling to large corporate or government agencies that will not pay a third party (Wal-Mart, Magna, Aecon, etc.).
Have a very large customer base.
Is Factoring New?
No! Factoring has been around for over 200 years and is a mainstream method of business finance. In fact over $8 Billion of accounts receivable were factored last year!
What Are Your Fees?
We charge a simple daily rate based on the value of your invoices. Dependent on the risk – this can be somewhere between 0.03% per day to 0.075% per day.
What Happens if an Invoice Goes Overdue or Doesn’t Get Paid?
If after 90 days (from the date of the invoice) an invoice isn’t paid you simply buy it back from us. You can either do this by giving us cash or another invoice from another customer.
At What Point Do I Get My 20% Back?
We get your residual payment back to you the same day that we receive cleared funds from your customer. Unlike many of our competitors we don’t wait until the end of the month as we know you need that cash in your business fast!
What Makes EBF Stand Out From The Crowd?
In a nutshell:
We are totally transparent in everything we do
We are professional
We’ve got your back
We love what we do