A common perception of factoring, or any type of receivables financing, is that it's prohibitively expensive.

People say this:

	"Let's see, you're charging me 3% for a month's lending. That's the same as if you charged me a... let's do the math... 3 times 12... oh my, that's a 36% APR!"

That's comparing apples... to oranges. With FastCash, you're buying services that help you grow your business. We aren't loaning you money, or extending you credit. We are buying your invoices, and providing you with other services.

For example, say you gave us a $1,000 invoice. Say your client pays us in 42 days. That would be a 4%, or $40, fee (see pricing for fee details).

For $40, you get:

	•		Money advanced to you, directly into your account, in 2 days, instead of 42
	•		Online reporting, updated daily
	•		Someone else to do your collecting calls
	•		Someone else to track down the new AP person, or the new office where the invoice was sent
	•		Credit approval of new clients before you start working with them
	•		Better client relationships
	•		A daily online report of all your invoices

And remember, the fee is deducted pretax; that is, it lowers the amount of income you receive. You are taxed, using the example above, on $960, not $1000. Assuming a 40% tax rate, that's a 1.6% savings on your taxes! (Consult your tax advisor for other ways that a pretax deduction can help save you money).

Even with much larger invoices, you're getting a tremendous value. If, say, the amount of income in the example above was $10,000, then you would pay us $400, again far less than what you might pay a temp or full-time employee who is hired to do your invoice work.

Any way you look at it, FastCash is a great value!

 

Copyright Aquent 2002