YOU GET FLEXIBILITY
THAT NO ONE ELSE OFFERS
We offer tailored processing systems
You can choose to use the latest in technology- based processing systems
or the old-fashioned paper-based ones
or a combination.
Unlike the others
we don't force you into a box
We will tailor our financing programs to help you make more cash.
Unlike the others
you get to choose
what works best for you.
We can do this because we have the knowledge,experience,
one-of-a-kind financing that is unique in the factoring industry.
OCF FACTORING COMPANY
- Providing factoring services nationwide
- Over 70
years of factoring company experience
- Up to 97% Advance Rates
Welcome to factoring. Whether you own a business,
look forward to
building one or are looking for new financial
tools for your current
employer, Factoring can help you reach your financial goals.
has the ironic distinction of being the financial backbone of many of America's
most successful businesess. Why ironic? Because factoring is not taught in
colleges, seldom mentioned in business plans and is relatively
unknown to the majority of American business people,
yet it is a financial
process that frees up billions of dollars
every year, enabling thousands of
businesses to grow and prosper.
Factoring is the process of purchasing
commercial accounts receivable(invoices) from a business at a discount. Business
practices today dictate that in order to get business you, as a provider of
goods and services, must extend terms to your customers.
These terms can
squeeze the life(and cash is the lifeblood of any business) out of a new or
Factoring has a long and rich tradition, dating back
4,000 years to the days of Hammurabi. Hammurabi was the king of Mesopotamia,
which gets credit as the "cradle of civilization." In addition to many other
things, the Mesopotamians first developed writing, put structure into business
code and government regulation, and came up with the concept of
After a while, Hammurabi and the Mesopotamians went the way of
extinct civilizations, but factoring endured. Almost every civilization that
valued commerce has practiced some form of factoring, including the Romans who
were the first to sell actual promissory note at a discount.
widespread, documented use of factoring occurred in the American colonies before
the revolution. During this time, cotton, furs and timber were shipped from the
colonies. Merchant bankers in London and other parts of Europe advanced funds to
the colonists for these raw materials, before they reached the continent. This
enabled the colonists to continue to harvest their new land, free from the
burden of waiting to be paid by their European customers.
these were not banking relationships as they exist today. If the colonists had
been forced to use modern banking services in eighteenth century England, the
process would have been much slower. The banks would have waited to collect from
the European buyers of the raw materials before paying the seller of these
goods, the colonists. (And at that point, who needed the bank?) This was not
practical for anyone involved. So, just as today, the "factors" of colonial
times made advances against the accounts receivable of clients, enabling the
clients to continue with their operations, long before they had been paid for
what they were sold.
With the advent of the Industrial Revolution,
factoring became more focused on the issue of credit, although the basic premise
remained the same. By assisting clients in determining the creditworthiness of
their customers and setting credit limits, factors could actually guarantee
payment for approved customers.
This is known as factoring without
recourse(or non-recourse factoring)and is quite common in business
Prior to the 1930's, factoring in this country occurred primarily
in the textile and garment industries, as the industries were direct descendants
of the colonial economy that used factoring so specifically. after the war
years, factors saw the potential to bring factoring to other forms of
invoice-based business and the expansion began.
Today, factors exist in
all shapes and sizes: as divisions of large financial institutions or, inlarger
numbers, as individually owned and operated entreprenurial
Many of these private factors sprung up in record numbers as
interest rates rose to new heights in the 60's and 70's. This trend intensified
in the 80's, primarily due to the increasing impact of interest rates and
changes in the banking industry. With banks becoming too expensive and too
inflexible due to heavy regulation(remember the Savings and Loan crisis?), the
small businessperson was forced to find other sources of financing for expansion
and growth. As more and more banks stop befriending the small bussinesperson,
factoring is becoming an increasingy popular option.
This year alone
thousands of businesses will sell billions of dollars in accounts receivable,
and they are doing it for profit, growth, and in some cases , their very
WHAT SETS US APART
• Same Day funding on approved
• We do not require a long term contract.
• 97% advance rates; tops in the industry
• Credit analysis on
new and existing customers
• Continuous collection management and
follow up on factored invoices
• Invoice and statement mailing
• Account status inquiries anytime;
Our flexibility allows you
to maintain control:
• You select accounts you prefer to
on an invoice by invoice basis.
• You control total factoring
costs by only
factoring on an "as needed" basis.
Up to 97% Advance Rates:
Advance rates are based on overall risk
associated with a particular industry as
well as experience and track
We hold reserve accounts to accommodate
typically experience dilution
and that we would otherwise not be able
service. Advance rates range from
80% to 97% of the gross invoice amount.
Fees are determined based on your
the credit worthiness of your customers,
how quickly your
invoices turn, and
monthly factoring volume.
individualized customer service,
by tailoring our flexible programs to fit
needs of each of our clients. We strive to
with speed, efficiency, and a personal touch.
As a client you are assigned one account
administrator who will
all of your account activity and inquiries.
us the ability to buy your
receivables and get the money to
12 to 24 hours.
Having one person look after your account
it easy for you to decide
which invoices you are going to sell and
you want to sell those invoices.
Our funding is primarily done by
direct deposit or wire.
OCF has more than 70 years of successful
cash flow and credit management experience,
experience we would love to
put to work for you.
with a member of our sales team,
please contact one of our regional offices
Fax #: 425-702-1874
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