Makati Capital Management

Factoring/SBF Benefits

• Immediate Increase in Cash Flow.  Under conventional methods, a company must sometimes wait 30, 60, 90 days or more to collect on an invoice.  With factoring, we immediately purchase your invoices and advance an initial payment up to 90% of the invoice amount.  When the invoice is paid, you receive the remaining percentage less our fee.  Cash flow improves to 24 to 48 hours from 30 plus days.
• Unlimited Capital.  Factoring is the only source of financing that grows with your sales.  As sales increase, more money becomes immediately available to you.  This allows you to constantly be able to meet the increasing demands within your industry.
• Flexibility.  You choose to sell only the accounts you wish to sell when you need the working capital.  You Control the Process!
• No New Debt.  By factoring, you incur no new debt, this is NOT A LOAN, and therefore, there is no principal or interest to pay.
• Take Advantage of Early Payment Discounts.  Factoring will allow you to take advantage of early payment terms offered by your suppliers.  If you can save two percent of your raw materials cost because you have the cash to pay the bills within ten days, then you can use those extra savings towards other areas of your business. 
• How Much Does It Cost?  Practically nothing when you consider how much is lost having to wait 60-90 days to get paid on services or products which you have already provided or paid for.  This money could be placed in an interest bearing account or be reinvested into your company to help it grow and produce additional revenues. 
• No Fees.  There are never any fees when the funding line is not in use.
• Your customers' Creditworthiness is Considered, Not Yours.  Factoring is based on the creditworthiness of the customers you do business with, not your businesses creditworthiness.
• Invoices are Paid Faster.  Many people don't realize that some debtors pay factored invoices faster then non-factored invoices.  The reason is that factors may report payment experiences to Dun & Bradstreet or other credit agencies, and most clients do not.  A debtor who is aware of this knows he may impair his credit rating by paying a factor slowly, whereas paying the client slowly may not affect his credit rating at all.
• Factoring Helps Build Credit.  Once you begin factoring and you have adequate cash flow, you can begin to pay your bills in a timelier manner and start establishing, or improving, your credit.  This improves your chances of getting credit terms from suppliers and improves your chances of getting conventional financing in the future.  We can even work with you if you have tax problems or are in bankruptcy.
• Simple, Streamlined Application and Quick Approval Process.  It takes about 7 to 10 days to set up the factoring account, once the account is set up; funding is 24 to 48 hours on verified invoices.