Solve Cash Flow Needs
One of the most convenient and flexible financing options available, Account Receivable (A/R) Financing is an ideal solution for your short-term cash flow needs. Accounts Receivable Financing is an asset-based financing arrangement in which companies use their receivables (house accounts) as collateral in exchange for cash. A minimum of $50,000 to a maximum of $1,500,000 is available.
Accounts Receivable Financing is a means for clients to accelerate cash flow by financing their open invoices. Clients receive cash in advance of payments due from their customers, typically within 30, 60 or 90 days, providing needed capital to meet operational overhead.
FINANCE
We’re Fast.
We know big business opportunities come and go in the blink of an eye, which is why we get money in your bank account FAST. When banks decline deals – KLP Holdings Inc., approves!
Get funded in 48 hours so you can start growing – now.
We’re Easy.
Your life as an entrepreneur is hectic enough, so we’ve designed our application to be simple and lightweight. Fill out our one page application, send us some bank statements, and get on with your day! We’ll take it from here.
We’re Flexible.
We are not a bank, and we will not see you as a series of numbers; we will look beyond your credit score and assess the health of your business as a whole when qualifying you for financing.
Our merchant cash advance program has no fixed payments…repayment is based off of a small percentage of your daily sales, and ebbs and flows with your sales volume – no late fees!
Commonwealth Capital FAQs
Q: Who is Commonwealth Financial?
A: We are a commercial finance company that specializes in the purchase of invoices for working capital.
Q: Why would a company sell their receivables?
A: Companies that find cash flow as a recurring problem often cannot afford to have working capital tied up in receivables 30-60 days. They need the working capital to meet the immediate financial demands of their business.
Q: Is factoring a type of loan?
A: No. Account receivable factoring is defined as the purchase of a company’s receivables, as opposed to a loan using the receivables as collateral.
Q: Wouldn’t a bank loan make more sense?
A: Banks often have restrictive lending requirements relating to cash flow, profitability, equity, and years in business, which prohibit them from making loans. Commonwealth Financial is not in the lending business. The decision to purchase invoices is influenced by the quality of your customer base and their performance as opposed to years in business or financial strength.
Q: If a factor buys my invoices, who actually bills my customer?
A: You prepare your customer’s invoice and forward it to Commonwealth Financial for an immediate advance. Commonwealth Financial mails the invoice to your customer and then follows up on it to ensure receipt of payment.
Q: How quickly do I get paid?
A: As a reliable and efficient commercial financing company, Commonwealth Financial advances within 24 hours of receipt of the invoice and may require supporting documentation.
Q: How are the fees for Commonwealth Capital services determined?
A: Fees vary from company to company and from client to client. They are determined by a combination of your customer base creditworthiness, average payment cycle, invoice sizes and factoring volume.
Q: Do I need to sell all of my invoices?
A: No. You decide which invoices you need to sell to manage your cash flow needs.
Q: How much will Commonwealth Financial immediately advance me?
A: Commonwealth Financial will immediately advance you as much as 80% of the value of your receivables so you have working capital to secure more business.
Q: How can factoring improve my credit rating?
A: When you pay your suppliers and creditors promptly, your credit rating increases and your reputation soars.
Commonwealth Financial purchases accounts receivable invoices, therefore, Commonwealth Financial assumes the risk associated with the credit and collectibility of a particular account. In assuming this risk, Commonwealth Capital exercises a great degree of caution and has established firm operating procedures and standards before it accepts any “Eligible Accounts” from a client.
To ensure profitability and successful accounts receivable factoring, which minimizes credit risk, high credit standards and guidelines have been established by Commonwealth Financial . The company verifies and requests certain documentation such as Federal ID, Articles of Incorporation, lien searches, client guarantee of validity, estoppels certificated and similar documentation.
For more information, contact
Kevin L. Parker at (313) 715-6835.
We Work with Factoring Brokers
Commonwealth Financial actively pursues factoring and purchase order transactions from factoring brokers. With a large percentage of our client base coming from brokered transactions, we understand and recognize that brokers are the backbone of our business.
We pay factoring brokers a percentage of the earned monthly income per deal funded by us. Commonwealth Financial pays your commission on a monthly basis which is accompanied by a detailed report that breaks down the fees generated on a per invoice basis. This is typically paid by the 10th of every month.
Your commission stream lasts for the entire client relationship and we allow you to choose whatever the degree of involvement you wish in each transaction.
Commonwealth Financial provides factoring and purchase order financing packages for companies located in the Midwest ranging in size from $5,000 – $3,000,000 per month in sales.
Please contact us if you would like to complete our non-exclusive broker agreement or if you would simply like to discuss or brainstorm a particular deal.
Learn more about being a factoring broker with Commonwealth Financial by calling or emailing us.
Purchase Order Financing, Factoring, and More
The difference between accounts receivable factoring and accounts receivable financing is that factoring involves the outright purchase of a client’s receivable and performing complete accounts receivable management. This is contrasted to accounts receivable financing which is a loan against receivables. Under the latter arrangement, the client company is ultimately responsible for administering, collecting accounts receivable and paying back the loan directly.
Accounts Receivable Factoring
Accounts receivable factoring involves a manufacturer or a service company selling its accounts receivable to Commonwealth Financial for cash.
Benefits:
- Company receives immediate cash to put back into the business
- Reduces administrative costs associated with collecting accounts receivable
- Offers a revolving source of working capital to our clients
Commonwealth Financial purchases invoices in most industries, including but not limited to, manufacturing, distribution, transportation, temporary staffing or other companies with billable service hours. We also specialize in purchasing federal, state, and local government receivables. After receipt of our completed Client Application, the initial purchase of invoices usually takes two to three business days. Subsequent transactions are usually funded within 24 hours.
Purchase Order Financing
Rapid growth, seasonal orders, or lack of equity are some of the biggest challenges facing businesses today. At times it’s not about finding orders but finding the cash to fill sold orders. Purchase orders can be a source of working capital and provide a cash flow solution to a company that is struggling to fill sold orders.
Commonwealth Financial provides needed cash flow by utilizing our client’s purchase orders as collateral. This type of financing allows business owners an opportunity to avail themselves of virtually unlimited capital for purposes of transacting business without parting with equity ownership or control.
We also have a special program available to assist qualified industrious entrepreneurs in getting started in the government supply contracting business.