Factoring is a quick and easy process that can put cash in your hand within 24-48 hours.
- Banks can take weeks or months to make business loan decisions.
- Improve Cash Flow Without Incurring Debt
- You never worry about adding liabilities to your balance sheet.
- Invoice factoring is not a loan and you never have to make monthly loan payments along with payroll and other operational expenses.
Benefits of Factoring in the Oil Industry
Your company can be free from shortage of cash flow issues with our factoring services. The oil industry is notorious for taking 60 to 90 days to pay invoices, nothing is worse than having to wait for customers to make payments on their bills so that you can pay yours. The wait is over when you choose Commerce Commercial Credit’s receivable financing services. You can make timely payroll payments and pay suppliers and expenses without damaging your business credit, incurring late fees or worrying that your employees will quit.
Why Choose Us
Not all factoring companies are the same. Your partnership with Commerce Commercial Credit, Inc. brings:
- Competitive receivable financing rates with same day decisions
- No Financials Required, No Monthly minimums, No Audit fees
- Transparent contracts with no hidden fees or upfront fees
- Receivable based lines of credit up to $2.5 million
Achieving and maintaining an effective and flexible cash flow is essential to the success of any business, particularly if you sell on trade credit terms. Often you might face an unwelcome pressure on your cash flow through delayed payment by your customers. An Invoice factoring solution can help you fund your business by unlocking the power of your accounts receivable.
Advantage of Invoice Factoring
- It provides the cash flow finance and debt management solution that your business needs to succeed
- a flexible source of working capital driven directly by your trade credit invoices
- It’s responsive, cost-effective and alternative to a bank overdraft or loan
- It helps you turn today’s sales invoices into tomorrow’s cash flow by tapping into your accounts receivable asset
- It extends favorable terms to customers with confidence.
- Step 1: Factoring Agreement The first step is to determine if your business meets preliminary qualifications to receive invoice financing/factoring. CCC will conduct credit analysis using it’s database on the on the clients (account debtors) who owe you money. The Factoring Agreement will set an initial credit line for your business with all the clients you plan to finance.
- Step 2: Submit Invoices for Your Initial Advance CCC will fund your initial advance based on the invoices you submit, the advance funding will vary anywhere from 80-95% of the value of the factored invoice. The amount of your advance is initially established and depends on the size of your client list, transactions, industry, dilution and recurring funding intervals.
- Step 3: The Remaining Balance of the Invoices and Fee Deductions The clients will be notified to pay CCC on the financed invoices. Once your customer pays the invoices based on the terms, the remaining balance will be wired to you, minus the factoring fee. The fee will vary depending on the number of days the invoice remains outstanding. Factoring fees calculated on the invoice amount and can range between 0.69% – 4.9%.
Factoring Agreement Terms
- You submit an invoice for $1000.00 to CCC on product delivered or service performed.
- CCC wires/Ach funds into your bank account at 90% = $900.00 deposit and holds in reserve 10% = $100.00.
- Client pays invoice amount of $1000.00 to CCC 40 days later, and CCC closes out the transaction.
- CCC charges 3% fee = $30.00
- CCC has $100.00 in reserve and deducts $30.00 from the reserve amount ($100.00 – $30.00 = $70.00)
- CCC sends the remaining balance of $70.00 by wire/Ach to your bank account.