FAQ - Setting up a factoring credit line

How do I get started with Business Factoring Hawaii?

It's very simple. Print and fill out our application (click here) and fax the application to our office along with a receivables aging summary or list of your outstanding invoices.  We'll contact you immediately to confirm receipt.  Once we have a clear understanding of your needs, Business Factoring Hawaii can prepare a proposal which summarizes all of the important details of our factoring services.  Occasionally, we will need to get copies of tax returns and a personal financial statement and other background information.

Do I have to have a good credit rating to open a receivables factoring account?

No, even if your business is brand new without a credit history or if you do not have a high credit score, we can help.  Remember, when a factoring company advances funds on an invoice or group of invoices, the factoring company is concerned primarily about the ability of your customer, the debtor, to pay the invoice.

Do I have to assign or factor all of my invoices?

You are welcome to factor some or all of your receivables.  That being said, it is best to set up (or assign) several (5 or more) customers to give you the flexibility for factoring invoices from any of your assigned accounts, when you need the funds.

FAQ - Receiving advances

How quickly can I receive my first advance?

We can advance funds as soon as the contract is signed, your customers have been notified and we have received your invoices and delivery confirmations.

How do I receive an advance?

Just fax your invoices and delivery confirmations to our office.  We'll deposit funds to your bank account by 4:00pm for invoices submitted by 11:00am.  You can receive advances whenever you need the funds.  Every day, once a week or several times a month - you decide.

Is there a limit to the number of invoices I can factor at any one time?

Not at all.  You may fax one invoice or dozens - your choice.  Most clients factor a batch of invoices several times a week.

Do I have to change my invoicing and delivery procedures?

Again, not at all.  We don't ask you to change your procedures except to note that payments should be made to Business Factoring Hawaii.  We'll provide you a stamp so you can imprint your invoices with our name and address to remind your customer to pay us directly.  Or you can permanently print payment instructions directly on your invoice.  Continue to deliver and invoice as usual.

FAQ - Help with collecting payments

Will you help me manage my receivables?

Certainly.  Part of our job is to monitor your receivables and help you to receive payment on time.  If you want help with statements or payment follow-up, just let us know.  Some clients do this work themselves; others want us to take care of it all.  You decide.

How will I know which invoices are still unpaid?

You may see your account status online 24/7 directly from your home or office computer.  We post payments and new advances to your account each day.  You can see (and print) your updated Aging Report every day at your desk.  One report will tell you, at a glance, which invoices are still outstanding and the number of days since invoicing.

FAQ - Factor service fees

How much do you charge?

Generally we charge between 2 - 4.5 % of the invoice amount for 30 day payment, 3 - 6 % for 60 day payment.  High dollar accounts with 10 or more assigned, credit-worthy customers may qualify for the lowest rate.

What other fees are charged?

Except in rare cases, we do not charge any additional fees above and beyond the standard contract factoring fee.  We do not charge any application fees, setup fees, origination fees, renewal fees or termination fees.  In addition, we include online account access, reports, statements, document scanning and retrieval and collection work on your behalf at no extra charge.

FAQ - Benefits for your business

How does factoring help my cash flow (and my business)?

Advances on your invoices give you the cash to grow your business, pay your bills and staff on time, improve your credit rating and take advantage of supplier discounts when you buy materials, supplies or equipment.  Click here to see more benefits.

Quite frankly, the largest most commonly cited benefit is "Peace of Mind". You can stop worrying about when you'll receive payment from your customers or if you can pay taxes on time, for example.  You can have the funds necessary when you need them - not when your customer gets around to paying you.  Essentially, you have converted an "idle" asset - accounts receivable - into cash to put to good use in your business.

Recommendations

There is an old saying -"Time is Money".  My saying is - "Money in a timely manner is priceless!" Tour Operator

Compared to our previous factoring company, BFH is much more service oriented, especially towards small businesses like ourselves. Apparel Manufacturer

I have eliminated cash flow issues with customers going beyond net 30.  One fax and Business Factoring Hawaii does all the work.  Easy, convenient and always willing to accommodate my busy schedule. No headaches or hassles! Industrial Motor Repair and Service Company

Business Factoring Hawaii has allowed my business to continue in light of receivables not being paid on time, allowed us to purchase supplies to handle larger clients, and provide funds daily. Commercial Printer

We have been very happy with the assistance that Business Factoring Hawaii has offered to us over the past year.  They have been very professional and responsive to our needs. Hawaiiana Home & Gift Items Distributor