Accounts Receivable / Asset Based Financing

Account Receivable Factoring is the purchase of accounts receivable for immediate cash. Factoring gives businesses the power to ensure growth without diluting equity or incurring debt. After invoices are submitted and verified, they are funded within 24 hours.

 

How it Works:
Once you’re signed up as a CBS Client, it’s easy to exchange your receivables for immediate cash. It works like this:

1. We establish a credit limit on the customers you submit

  • Tell us their business name, address, and amount you need

  • We pull credit and establish a limit without delay

 

2. You complete your business transaction as usual

3. You send or deliver your invoices directly to CBS

  • Use our simple form to summarize and calculate the amount

  • Attach the proof of delivery you usually send to your customer

 

4. We verify that product was received or service performed

5. You receive your cash from CBS

  • We wire funds into your bank account within 24 hours

  • We retain our agreed fee for service

 

6. We forward your invoices to your customers and they pay us directly.

It’s really that simple. And you can monitor the status of all your transactions online 24/7, on a real-time basis, through our automated system, at no extra charge.

 

Asset Based Loans

 

Clear Business Solution's Asset Based Loan may be the right resource for your growing business. Asset Based Loans or ABL can offer greater flexibility than factoring. This type of loan allows other types of collateral, such as: inventory, and accounts receivable.
 
What is an Asset Based Loan?
An ABL allows you to use a certain percentage of your company’s inventory combined with accounts receivable as collateral. An ABL loan can provide you working capital in situations such as; buyouts, recapitalization/restructure, paying for operating expenses, funding inventory, and expanding your business.
 
How much of my inventory can I pledge?
Generally, you can secure an advance using up to 50% of eligible inventory, and up to 85% of eligible accounts receivable.
 
What is the frequency of advances?
Advances are available and provided daily and weekly.
 
What type of loan is Asset Based lending?
All Asset-Based loan funding is based on a line of credit.

How CBS Factoring Can Benefit YOUR Company:
The benefits of factoring with CBS really boil down to adding profit to your bottom line. Before you factor, make sure you can take advantage of the features and leverage them into value:

TAKE ON ADDITIONAL BUSINESS
Most of our clients can do more business if they have better cash flow. How this works depends on your industry and your market. Some real examples are:

  • improving or increasing marketing

  • saying “yes” to customers who demand credit terms

  • investing in income-producing assets--people and equipment

  • eliminating supplier constraints

  • shifting manpower from collection to marketing and production

 

REDUCE EXPENSES
Many of our clients actually reduce expenses by outsourcing credit and administration to CBS, and by leveraging their healthy cash position. The most common ways include:

  • eliminating bad debt with CBS’s credit guarantee

  • reducing collection and administrative expenses

  • receiving cash discounts from suppliers

 

IMPROVE YOUR FINANCIAL CONDITION
Exchanging invoices for cash enables some businesses to “get current” or reduce strains caused by tight cash flow. It also improves their own credit rating. Here are some examples we frequently see:

  • staying current with suppliers and creditors

  • establishing payment terms with suppliers, further improving cash flow

  • meeting regular payroll obligations

  • bringing payroll taxes current
     

How can YOUR company benefit?
Every company has a unique situation. Before signing up to factor, it’s important to estimate how our services can increase your business, reduce your expenses, and improve your financial situation. Call a CBS representative or request information, and we can help you answer these important questions.

 

 
[ Back ]