| |
Does my company qualify for Factoring? |
Your company could qualify for factoring if it gives sales terms, is growing rapidly or has chas flow concerns. Specific information is given on a per company basis. To find if your company can employ factoring, you can fill out a short Application Form. |
|
|
Does Factoring increase my Debt/Liabilities? |
No. Factoring is a service which is accounted for as an operating expense instead of a debt. Engaging in factoring will not hurt your credit history or increase your liabilities. |
|
|
How long does it take for me to get paid for my invoices? |
Once your clients have been approved, cash disbursements will be made as soon Summar Financial receives your invoices. |
|
|
How much does Summar Financial charge for its services? |
Fees vary depending on the variety of and credit-worthiness of clients a company has, on the value of each Invoice, and the duration of each Invoice’s terms. Summar Financial’s average fees range from 2% to 3%. |
|
|
Will Factoring affect my relationship with my customers? |
No, you will continue doing business with your customers as usual. The only thing that will change is that the checks for the invoices which Summar has purchased will go to Summar Financial instead of to your company. We will notify your clients that you have hired Summar Financial as a financial servicing company and that checks should be made to Summar Financial instead of your company. Other than that, nothing will change and the relationship/image which your company maintains with your clients will be untouched. |
|
|
What happens if my customer does not pay an invoice? |
Summar offers both non-recourse and recourse lines of credit. With non-recourse credit lines the risk and potential cost of a client defaulting falls on Summar Financial. With recourse credit lines, your company would maintain the default risk and you would be responsible if your client did not pay an invoice. |
|
