A NICHE FACTORING COMPANY DELIVERING CUSTOMIZED CASH FLOW SOLUTIONS TO SUPPORT BUSINESS GROWTH

Many industries offer quick pay as an alternative to factoring. While both provide a solution for long payable periods, quick pay often comes at a higher quoted rate. Factoring also comes with the added service our Account Management and Credit Department teams provide. By choosing to factor with OFS, you have a more sustainable solution when compared to quick pay and an expert team of industry professionals fighting to give you the best possible returns and experience. With services such as free credit checks on new customers that can help mitigate the risk your business faces, why not choose a service personally invested in the growth and success of your business? Or continue using Quickpay with the vendors that can get a quick turnaround at a competitive rate, and use OFS when it makes financial sense.

It is essential to know the difference between recourse factoring versus non-recourse factoring if your clients do not pay their invoices.

Recourse factoring is an agreement between you and your factoring company in which you are liable to recover the outstanding invoices if the client does not pay. Though recourse factoring places the risk on the client, you will find yourself taking very few, if not none, of the risky debtors who are more prone to default due to our free credit check service. Recourse factoring is always cheaper than Non-Recourse, so in the long term, this is the best option for all parties regarding the growth of your business.

Non-recourse factoring is an agreement between you and your factoring company in which the factoring company agrees to purchase accounts receivables without “any recourse.”  In basic terms, this means that the factoring company is liable to collect all unpaid invoices without the client having to purchase them back or replace them with other invoices.

At Outsource Financial Services, we exercise recourse factoring, the most common form in the industry. Though recourse means the ultimate risk remains with the customer, it comes with the benefit of all our contract terms and fees being completely transparent. Other factoring companies advertise a low upfront rate, but the contracts have hidden fees and strict payable terms. There are no fees to start an account with us at Outsource, no minimums on how much you need to factor, and no fees for leaving.

We reserve the right to send unpaid invoices to a collections agency if, for some reason, our client cannot pay back the funds. Still, realistically, we will only push to collections when all other avenues have been exhausted.

None. At Outsource Financial Services, we do not have any hidden fees. When invoice factoring companies bury costs in the fine print of the terms and agreement, they are misleading the client and damaging their reputation. 

There are no long-term contracts and no strings attached. You have the freedom to cancel your contract with Outsource Financial Services at any time without penalty or being locked into something that no longer suits your needs. No notice is needed, and there is a same-day turnaround for clients wishing to make a switch.

You do not need to factor all of your invoices. However, once a customer has been assigned for factoring, you would need to continue factoring for that customer until you are done, we are paid off, and they have been released. To clarify, you can pick and choose which customers to send to an invoice factoring agency, such as Outsource Financial Services.

You can expect to receive funding within 24 – 48 business hours after having a phone consultation and submitting your application. You should get a call back from any serious inquiry within an hour (probably less than 5 min) if you do not reach someone the first time calling. We provide immediate attention to due diligence and underwriting and can often offer same-day application approval.

No. You can cancel your contract at any time. Invoice factoring with Outsource Financial Services is a low-risk method of improving cash flow. We absolutely do not believe in keeping a business partner one minute longer than they want. When a client parts ways, we only wish them the best in all future endeavors and hope they keep us in mind for the next time they need liquidity for their company growth.

A customer with already past due invoices might require more review, but as long as the debtor is credit-worthy, we will review any debtors at any invoice age. We also run a free credit check on any potential customer you wish to invoice. If we cannot purchase the client’s invoice, we can guide you on the following steps to hopefully get paid. Have some old invoices? Call today for a free consultation!

Debtors will send payments directly to the invoice factoring company (Outsource Financial Services).

• Trucking
• Import/Export
• Manufacturing
• Staffing
• Medical
• Security
• Disaster Recovery
• Agriculture

1. “Jim” carries a freight load assigned by a broker or found on the load boards.
2. Once delivery is complete, “Jim” receives an invoice for his services which will be paid in 40 days.
3. “Jim” cannot afford to wait that long to receive payment, because bills are due next week, and “Jim” needs cash to continue operating at capacity.
4. “Jim” sends his invoice to OFS, and within 24 hours he receives 90% of the value in his bank account. “Jim” can use this money to continue operating tomorrow rather than waiting weeks to be paid.
5. OFS is paid on the invoice through their expert collections team, and once a typical factoring fee is charged by OFS, the remaining value goes into reserves.
6. One day, an unexpected expense threatens the health of “Jim’s” business, but due to his reserves which have built up through factoring, “Jim” is able to cover the expense and continue operating. Since the reserves are able to be pulled at any time, “Jim” can rest easier knowing he has the money to withstand unplanned expenses.