Accounts Receivable Financing & Factoring

Quite simply...invoice factoring turns your receivables into cash immediately!

1) You Invoice Your Client... 2) You Get Money From US, the Factor... 3) We collect from your client

Factoring is the financial tool that speeds your cash flow and helps you to avoid the problems that slow paying customers can create for growing companies. Receivables Factoring provides fast and reliable funding to companies who need increased cash flow to expand their business. To do this, T .J. Stewart or it's assigns will purchase your credit-worthy accounts receivable at a small discount and fund you with immediate cash. There are virtually no limits on the size of account we can service; large or small.

You'll get cash the day your product is delivered instead of waiting to be paid at a future date.

Receivables factoring is not a loan. There is no debt repayment or compromise to your balance sheet. Invoice factoring allows you to use your accounts receivable to create cash for the growth needs of your company today.

Cash Flow Management Benefits
A key advantage of TJS’s services is its ability to design programs that meets the needs of a particular company. Client-specific cash flow management programs are created by breaking down and reassembling TJS's basic services to satisfy the company's individual accounts receivable management requirements.

Firms that factor receivables obtain many benefits. For example, companies working with TJS can gain control over accounts receivable management and cash flow management. Cash flow management is achieved because payment of
invoices purchased by TJS is contractually guaranteed and made on a scheduled basis. Thus, uncertainty regarding cash flow is removed, and the company can sell its products more aggressively, since funds will be available when new orders must be filled.

Factoring also gives a company the options of converting receivables into cash ahead of due dates. Thus, funds are available for labor and materials prior to the completion of a contract, and the firm can take advantage of cash discounts and special material purchases. And, as a financing alternative, factoring is competitive with bank lending rates. In addition, expenses related to credit and collections become known variables. Since TJS's fee is based on the company's sales volume, expenses can therefore be easily projected.

A Way To Increase Sales & Profits
Is your company new and without a credit history? Are you undercapitalized, or a business with high seasonal demands? Have you
decided to purchase the interest of a partner, add a new product line or simply expand existing operations? If the answer is yes to any of these questions, factoring may be the answer.

Fortunately, banks are not the only source of working capital. Money can be obtained quickly through accounts receivable factoring where an ongoing line of capital can easily be established.

Factoring is a way to increase sales. Most companies cannot afford to carry many customers who pay their invoices much beyond thirty days. Quite often, companies are forced to turn down some of their more profitable orders because of slow-paying customers. TJS can extend credit to these slower-paying accounts, thereby giving you increased sales.

Factoring also goes hand in hand with your financial planning, giving you some predictability in your month-to-month financial situation.

A Way To Increase Working Capital
In today's highly competitive economic environment, businesses are under constant pressure to tighten operational controls in order to maintain profitability. In many cases, small companies must devote more time to credit and cash flow concerns which shifts attention away from the principal objectives of increasing productivity, sales and marketing efforts.

Cash tied up in accounts receivables can be a permanent problem for smaller companies. As your business grows, additional capital is frozen into accounts receivables. Most companies are growth-oriented, but sometimes so undercapitalized that a strain is placed on the entire firm. TJS is dedicated to helping you to free up your capital and use it in more profitable areas. You are now able to take advantage of profitable opportunities such as discounts and special rates.

From medical factoring to trucking factoring, almost every business that needs to improve cash flow is a good candidate for accounts receivable financing programs and factoring service. TJS provides factoring to a variety of clients, from medical factoring to trucking factoring. Industries currently serviced include:

At TJS. we pride ourselves on our ability to develop a financing package to meet the needs of a very diverse client base. Unfortunately do to the inherent risks associated with a select few industries, TJS is unable to provide factoring services to companies whose primary business is medical billing, construction, or sub contracting. We look forward to the opportunity to discuss how TJS will be able to assist your company.

My credit isn’t great; can I still use your accounts receivable funding services?
You don't need perfect credit or bankable financials; we are more interested in the creditworthiness of your customers than your own. If you sell to good, dependable customers, we can provide the business receivable funding that you need to grow your business.

Will my company be eligible for Accounts Receivable Funding if it currently has a bank loan or bank line of credit?
If a bank has a lien on your company's accounts receivable, you should let us know. We will ask the bank to subordinate that lien in favor of TJS to start the factoring process. Whether this is possible depends on the policy of the individual bank in question. Alternately, we may be able to arrange to pay down or pay out the loan from your funding. In order to secure business receivable funding, it is very important that we have this information in advance.

My company has an outstanding tax bill. Can I still apply for Accounts Receivable Funding?
Tax problems vary in complexity and are handled on a case-by-case basis. It is urgent that we know of any tax issues so that we can discuss lien subordination with the IRS in order to begin the factoring process.

The financial aspects of the deal are mostly dictated by the current prime interest rate, the credit worthiness of the paying account and their industry. Their are other factors that come into play but these are the main criteria. At this writing, the Prime Interest Rate is 7.25%. As interest rates rise and fall, so to will the factoring rates. Also, the credit worthiness of the paying account will impact the factoring rate; the better the account credit rating, the lower your factoring rate.

Typically, we can fund 70% to 90% of the Accounts Receivable balance. The real comfort range is 80% of the Accounts Receivable balance but higher values are quite common. A typical deal would be as follows:

Current Accounts Receivable balance is $500,000. The accounts have decent credit and a receivable is normally outstanding for 45 days. We would apply 80% to the $500,000 and get $400,000. In this example, the daily interest rate would be .1% and the daily factoring fee would amount to $400.00. If the account was paid in 45 days, we would multiply $400.00 by 45 days and get a total factoring fee of $18,000.00. This example is a middle of the road deal and your rates may be different. We always try to get the lowest possible rate for all our clients. Your fee would be predicated upon only the outstanding invoices and only for the time outstanding. Typically, this is recourse funding whereby you would be expected to buy-back any non-paying invoice.

To get started, all you need to do is Download the one-page application form and complete it and send it back to our company along with the requested documents. Once we are in receipt of all your requested data, we can be in a position to fund your request.

Typically, funding will take only a few days.

The information we typically want on our client company would initially include recent financials - (year to date income statement, balance sheet, aged accounts payable and accounts receivable journals) and all items on the bottom of the attached New Client Application.

Please download the Factoring Application. Please print this form, complete it and fax it back to my office at your convenience. Once the preliminary underwriting has been completed, additional info will be needed. Upon completion of all underwriting, your cash would be available for distribution within a few days.

Following is a list of additional information that I will need to proceed with underwriting after you send the info requested at the bottom of the attached form. To clarify this procedure, First, send me the completed Factoring Application form and the items requested at the bottom of this form along with the underwriting fee of $300.00. This fee is for credit checks and UCC searches etc. Any amount not needed during underwriting will be credited back to the client. After this is sent to us you should start assembling the Second part items below. Upon receipt of all this information and once our due diligence has been completed, your deal will be ready to fund.

Below is the Second part of our items needed to complete our underwriting. This is a total list of items needed. The items not requested before are highlighted in yellow:

* Articles of Incorporation, partnership or LLC etc. & Fictitious Name Filing
* Deposit Instructions (where would you like the funds wired?) This would include bank name, routing number and account number
* Current Accounts Receivable Aging Report
* Current Accounts Payable Aging Report
* Current Client List
* Financial Statements (year-to-date) Income Statement & Balance Sheet
* Most recent tax returns
* Copy of your driver's license of business principals

Items may be faxed to 765-396-3052. If the items are in excess of five (5) pages, please mail to the address below:

T. J. Stewart
20310 N SR 3
Eaton, IN 47338

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