CFG

Customer FAQ Click For Factoring FAQ

Q: How long has the company been in business?

A: The company has been in business since 1978 operating as a Corporate Financial Services Company, specifically assisting the corporate community with a whole range of direct access lending financial services. All corporate finance services are offered our by Corporate Financial Group (CFG) division which is part of Corporate Finance New York.

Q: What types of financial services does CFG offer?

A: CFG was established to service the corporate community with financial products and services tailored to meet their needs. Our financial services include, asset-based lending, factoring, accounts receivable financing, equipment and inventory loans. CFG also offer through its commercial mortgage services division a number of commercial real estate financing products, from traditional commercial loans, to hard money, bridge and mezzanine financing.

Q: How soon can you issue a factoring proposal?

A: A proposal can be issued usually within 24 hours after receiving (1) the Application (2) Copy of your Accounts Receivable Aging (3) Copy of your Accounts Payable Aging (4) Your Customer list with at least your top 10 customers. With the proposal, you will be asked to provide additional standard items required to complete the application process.

Q: Is accounts receivable funding a new financing option?

A: Accounts receivable funding is one of the oldest forms of financing. It has been around in one form or another for more than 4,000 years. Until the mid 1980s, most people thought accounts receivable fund­ing was only used in the textile and garment industries. Today, accounts receivable funding is a widely used and viable financing solution for all types of businesses that extend credit terms to their customers.

Q: How can accounts receivable funding help my business?

A: By providing an immediate source of cash flow for your company. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and more.

Q: How is accounts receivable funding from your company different than accounts receivable financing from a bank?

A: When making a funding decision, we focus on the creditworthiness of your customers while banks will focus on your company’s financial history and cash flow. Plus, since accounts receivable funding is not a loan, there is no debt on your company’s balance sheet. Best of all, we will make a quick funding decision, while banks may take weeks—even months—to approve a loan.

Q: Will my company be eligible for accounts receivable funding if it has a bank loan or line ‘of credit?

A: If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien in our favor. Because this is a common occurrence, most banks will accommodate the request, but we must know this information in advance.

Q: My company owes back taxes. Can I still apply for accounts receivable funding?

A: Yes, Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can dis­cuss the payoff of your back taxes or a lien subordination with the IRS.

Q: I have had a past bankruptcy, is accounts receivable funding still an option?

A: Yes, we will still consider your application even if you have credit problems or a past bankruptcy.

Q: What information will you need from my company to begin the accounts receivable funding process?

A: Along with the application, be sure to include your company’s most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or DBA filing, a master customer list and a sample invoice. For startup companies, please also submit a business plan and projected sales forecast, and an owner/officer history and profile.

Q: Which customers would be good candidates for accounts receivable funding?

A: Ideally, we would like to fund all of your customers. First, we need their names, addresses, phone numbers and the amounts of credit desired. This will save you time when submitting invoices to us. Also, anytime you obtain new customers, fax the same information to us, and we will check them out for you.

Q: Can your company purchase only a portion of my company’s invoices?

A: Absolutely, but remember that higher numbers of receivables purchased on a regular basis can result in more competitive rates. Terms can be especially flexible when there are large numbers of invoices issued to a larger, rather than smaller, pool of your customers.

Q: How long does it take to receive the first funding?

A: The initial funding takes between 1-3 business days after we receive your signed contract. If you wish, you can send your invoices to be funded with the signed contract. After the initial funding, your company can receive funds usually within 24 hours after verification.

Q: Do you purchase outstanding invoices?

A: Yes. For the first funding only, we can purchase your invoices from your outstanding accounts receivable.

Q: Are accounts receivable funding fees tax deducible?

A: Most accountants agree that accounts receivable funding fees are an expense and should be treated as such.

Q: Do you verify invoices with my customers?

A: Invoice verification is an essential, and accepted, part of funding. Because factors verify invoices with customers, they can tell clients if there is a customer service problem right away. A non-factoring client may not notice the problem until the invoice becomes past due. By that time, it may be too late to save the account. For the process to run smoothly, we suggest that you call your customers or send them a letter in advance to let them know that you are now working with a factor. If you need assistance in writing the notification letter, we will be happy to provide you with a sample letter.

Q: What should I do if my customer mistakenly sends the payment to my company?

A: This might happen, especially with the first invoice. If this occurs, the check must be sent to us immediately. Your company should never deposit invoice checks that were already purchased by the factor. We also ask that you notify your customer to pay us directly in the future.

Q: What happens if my customer doesn’t pay the invoice?

A: This depends on whether your company entered into a non-recourse or recourse agreement with the factor. In a non-recourse agreement, the factor will absorb the credit-related loss. However, with a recourse agreement, your company will have to reimburse the factor—either by having the invoice deducted from the next advance or replace it with another collectable invoice.

Q: How can I be certain that the factor will treat my customers well?

A: The last thing we want is for you to lose a customer. We are not a collection agency. We will never harass your customers for money. Maintaining your customers’ goodwill and confidence are of utmost importance to us!

Q: What is the Advanced Rate?

A: The Advanced Rate is the percentage advanced on your invoices. For example, you sent a $10,000.00 invoice to be factored, the factor advances 90% of that invoice to you ($9,000.00) via wire transfer to your bank
account within 24 hours.

The additional 10% of the invoice is sent to you by the factor (less service fee) once the invoice is paid by your customer.

Typical advances are 90% to 92% of the invoice, but the actual Advanced Rate (as high as 95%) is based on the age of the invoice (10,30,60,90,120 Days), the financial strength and credit worthiness of your customers.

How much does it cost?

Our services are tailored to your specific business so the fees will depend upon your specific needs. There are two types of fee. The first is the cost of the money you use, which is extremely competitive. The second is a service fee, which encompasses the collections service.

Fees will also vary depending on the advanced rate, invoice aging, and the total dollar amount you intend to factor on a monthly basis, there are also volume discounts. However, specific Factoring Fees cannot be quoted without information on your customers, invoices, amounts you wish to factor, and your type of business.

You should know that we offer one of the lowest factoring fees in the country.  And, the fact is, we want to be your factor, so we will be more than competitive. We will be happy to provide you with a proposal. To GET PRE-APPROVED, please CLICK HERE to complete our short application.

Q: I am currently factoring with another company, can you compare our rates and perhaps lower are factoring fees?

A: As one of the lowest factoring fee factor in the industry, we should be able to beat most other offers. If you are factoring now and would like a factoring fee/rate comparison, please CLICK HERE to complete the short-form. The representative that handles your region will contact you shortly.

Q: What is Factoring?

A: Factoring is one of the quickest methods for companies to raise working capital. Used by almost every industry, factoring allows your company to raise the needed capital for acquisitions, expansion/growth, negotiate better
terms with your suppliers/vendors, restructuring, meet payroll or survival!

Factoring is converting your accounts receivables/invoices for cash, thus allowing your company to receive the needed cash quickly!

Why wait 30-60-90 days or longer for your customers to pay you? Factor your invoices, and get the money from your customers now - not weeks or months from now!

Factoring does not require additional collateral and does not create debt!  

Factoring is ideal for companies with cash flow problems, and companies that are going through temporary setbacks. 

However, did you know that factoring is also very beneficial and essential to healthy companies? Absolutely!  With factoring, you can focus on sales and growth, and we focus on your steady cash flow to continue!

Q: Can a Broker submit deals to CFG?

A: Yes. CFG is pleased to work with brokers. Please visit our Broker a Deal
page to submit your proposal.

Q: Our company is in trouble and we are considering reorganization under Chapter 11, can you help us?

A: Yes. Our asset-based lending turnaround/workout specialists can help companies in trouble, including companies that are in Chapter 11. Our focus is to prevent Chapter 11 or if already in Chapter 11, to exit, by restructuring debt and providing working capital with a number of asset-based lines of credit and/or term loans tailored specifically for the situation.

Q: What if my deal failed to meet CFG's lending criteria?

A: CFG has established itself as a one-stop shop for most corporate financing needs, which means, doing our best to get your deal done even if is not with
CFG.

Although we cannot guarantee success, CFG has established a network of lenders, each having their own unique lending criteria, collectively, providing financing options to help each other get deals done.

These other lenders also participate in the excess volume of business
generated through our online network.

Q: We are a Bank / Mortgage Company / Loan Company / REIT, and we would like to sell part, or, all of our existing loan portfolio. Can you help us? And, who pays your fees?

A: Yes. We work with a number of institutional investors, and we are actively looking for this type of opportunities. Our fees are paid by the buyer of the
portfolio, unless other arrangements are made by the parties.

Q: Our company is opening an international division or subsidiary, but, we need assistance with local agencies, licensing, marketing, equipment, inventory, etc.. Can you help us?

A: Yes. We have an international network of professionals and resources, which are available to our clients that need assistance with international
requests.

Q: We are expanding our business, but, we need assistance and guidance on how to proceed. How can you help me?

A: Our Corporate Services Division offer a whole range of specific services, including, helping companies with day to day guidance and consulting on every aspect of expansion and growth.

Q: I would like to introduce my company or product to a major distributor, manufacturer or company. Can CFG help, and what are your fees?

A: Yes. Our Corporate Services Division offer this type of service. CFG has established partnering relationships with major companies. These relationships are cross-marketed between CFG's client base and partner companies. Our fees are based on a percentage of the contract between our
client and the partner company.

Q: What other services does CFG offer?

A: CFG offer related business services at discount rates to its client base. These additional services include, Internet services that provides hosting, Internet connection and web developing at discount prices. Communication services that includes local and long distance, DSL and Data.  In most cases these additional services are offered at cost which are less than what our
clients are paying at the time.

Q: How can we partner with CFG to cross-market our products and services with CFG's products and services and be part of the CFG online network?

A: Cross-marketing our client's and partner companies products and services on our online network was a CFG concept that became a very beneficial and profitable reality for our partners. It brings together a network of reliable companies offering each other products and services from a collective marketing venue that increases sales at no additional marketing cost. Click
here for more information.