What is invoice factoring?
Invoice factoring is the purchase of an invoice, at a discount, in exchange for immediate funds.
How can invoice factoring help my business?
By converting accounts receivable to immediate cash, your company can unlock a typically frozen asset and fund working capital, payroll, pay taxes, stock inventory or raw goods, purchase advertising, and build new product lines among many others.
How do I get started?
You can either contact RMP Capital Corp or download an application to get started. After you complete an application, your application will be reviewed and, if you qualify, a proposal with all terms and conditions of our program will be issued. Following your acceptance of the proposal, and remittance of basic financial information, your request will be reviewed and RMP Capital Corp can begin to fund your accounts receivable.
What if I have back taxes, historical losses, or poor credit?
RMP Capital Corp takes great pride in overcoming obstacles. We offer creative solutions, not turndowns. Contact us today to see how we can help your business
What is the process to fund my invoices?
When you create an invoice, it will be submitted to RMP Capital Corp for review and verification. Invoice verification is a great tool which can help your business while assuring RMP Capital Corp that the invoice purchased is going to be paid. We call your customer to verify the amount is owing and, if there is a problem, we alert you so that you may resolve the issue. Upon successful verification, RMP Capital Corp will approve the invoice purchase and fund your company. When the invoice is paid, RMP Capital Corp will release any reserve withheld, less any fees, to you.
Why would a company sell their accounts receivable?
Companies sell their accounts receivable in order to free up funds, immediately, instead of waiting for payment on their invoices.
Is factoring only used by distressed companies?
No, factoring is also used by companies that are in high growth situations where traditional lending can’t keep up with the capital needs of the growth. Companies that are too new to qualify for traditional lending will utilize factoring as well.
Will I continue to bill my customers as usual?
Yes, RMP will not interfere with your normal billing process. The only difference in your process is the location the bill will be paid to.
Will you contact my customers?
RMP will need to contact your customers in order to verify the amounts of your invoices. While this doesn’t sound ideal for you, most accounts payable departments are used to working with factors and normally it doesn’t present a problem.
How much will you advance off of an invoice?
Advance rates are largely determined by your need for capital but RMP will go up to 90%.
I just started my business a few months ago, would you consider my application?
Yes, if you have invoices with strong, credit worthy clients, and experience in the industry, RMP will consider your application.
Can I track my invoices online?
Yes, RMP has a secure online tracking system so you will be able to monitor all your invoices that are coming in.
Which industries will you factor?
RMP will factor in most industries as long as there is a business to business commercial invoice. However, we don’t factor in the medical industry when insurance companies, Medicare, or Medicaid are involved.