At Bridgeport Capital Services we believe it's what you don't know that will hurt you and that is the main reason we strive on a daily basis to educate our clients so they can make the best financial choices when it comes to sound business decisions focused upon Corporate Growth and Financial Security . At BCS our success is measured by our client's financial success and with financial success comes the financial freedom knowing that your Company's Financial Future is safe under the guiding light of BCS as BCS guides you into the future like the beam of light from a Lighthouse making sure every vessel under its beam is safe from the hazards of stormy weather or dangerous conditions.
Q & A
What you need to know !
Frequently asked questions
Is Factoring a new financial option ?
Factoring has been used for centuries. It is one of the oldest forms of financing. Until recently, factoring was primarily used in the garment and textile industries. Today, factoring is a $150 billion/year financial product and is widely used by all types of businesses that extend credit to credit worthy commercial customers.
How does Factoring differ from Bank Funding?
Factors like BCS make funding decisions based on the credit worthiness of their customers. Banks make credit decisions based on a company's financial history, cash flow, and collateral. For this reason, banks tend not to lend to startups, businesses operating for a short period of time, businesses that have had losses (even if the loss was due to startup costs), past problems in the business, and a wide range of 'red flags'. The factor is more interested in the credit worthiness of your customers and not in any skeletons that may be in the closet. A factor is more interested in what you are doing today, what you can do tomorrow, and less concerned about what happened to you yesterday
What companies benefit most from Factoring ?
When is Factoring NOT a GOOD FIT for a business ?
Why would a Company sell their accounts receivable ?
Sometimes, companies with recurring cash flow problems can't afford to wait 30, 60 or even 90 days for invoice payment. They need cash to meet immediate financial demands. Factoring helps provides this cash by funding the purchase of accounts receivable, often within 24 hours after invoices are created. More often, companies are looking for a safe, simple way to fund their company. Factoring provides a continuous and reliable form of funding. This allows a company to better plan their production and purchasing for the next sale, without having to plan around potential wide fluctuations in cash flow waiting on customers to pay.
What type of invoices qualify for Factoring ?
You can factor almost any valid invoice for a service already performed or a product already delivered to a credit worthy business (Customer).
How will Bridgeport Capital Services treat our customers ?
At BCS we recognize and respect the relationships and goodwill you have created with your customers, and we will treat them with the same degree of integrity and professionalism. Any serious issues will be discussed with you and handled appropriately
Will my customers think I am in financial dificulty if they find out I am using a Factor?
Absolutely not! Factoring is a viable financing option for all businesses. As long as it is handled in a professional manner, your clients will understand you are doing what every business does: Putting in place a well thought out working capital facility to insure your business continues to grow and support your customers. Most of your clients are accustomed to dealing with factors, which is a $150 billion annual business in the U.S. alone. Factoring has been around for several centuries. Most business professionals today are aware that factoring is a common financial tool used successfully by companies of all sizes.
What size business will Bridgeport Capital Services Factor ?
At BCS we can factor your business if you have $50,000 or more in outstanding accounts receivable from credit worthy customers. Some of our clients began factoring with their first sale while other clients were well-established businesses. If your receivables are $50,000 or more you can contact BCS and review your Factoring needs.
How long does it take to get started ?
Within 24 hours of receiving your basic company information, BCS will issue a proposal. If it is accepted by you, BCS will conduct due diligence and complete all documentation. Initial funding typically takes place about one week from the time we receive all necessary documents. After that, funding generally occurs on a recurring basis within 24 hours of your invoice submissions.
Do I need to sell my invoices ?
No. You decide the invoices you want to submit for factoring that help you successfully manage your financial needs. BCS provides you with a flexible financial service that allows you to create the cash flow you need.
What reports will Bridgeport Capital provide me ?
BCS will provide you with status reports on each invoice we have purchased (e.g., those that have been paid and when, which invoices are still outstanding, the balance in your reserve account, etc.). You can also access daily and weekly reports with full account details. These reports are available on line via our website.
Can BCS supply references from existing Factoring Clients ?
Yes. We are proud of the services we offer, and we are more than happy to provide references. Our Clients are also proud to be part of the BCS Family and more often than not our best form of advertising.
If I Factor from BCS can my Company still borrow money from other sources ?
Yes. That is one of the big advantages of factoring with us, as we typically only take a security interest in your accounts receivable as collateral for our purchase of them. Your machinery, equipment, intellectual property, and real estate generally remain unencumbered and available as collateral for other lenders. If a commercial bank provides you with credit, they usually take a security interest in ALL your assets. This means you generally cannot borrow from any other source, unless the bank subordinates its interest in those assets
Can I factor if my business already borrowed from a bank ?
Sometimes yes and sometimes no. You can still factor if your bank has not taken a security interest in your accounts receivable. This is rare, but it does happen. Otherwise, we must work with your bank to arrange for them to subordinate their interest to us, or work out some other acceptable arrangement. If you have an existing loan and would like to determine if you can still factor with Bridgeport Capital, fill out our pre-qualification online application, and a Bridgeport Capital executive will contact you to discuss your options.