What is factoring? Is it a new concept?

Factoring is the process by which a business sells its slow paying accounts receivable (AR) at a small discount for immediate cash. Factoring is an age-old form of financing dating back to Roman times. In America, large corporations have utilized factoring since the 1800’s. But it wasn’t until the mid 1980’s that factoring was made available to small businesses and it is rapidly growing into a $160 billion dollar industry. Unlike Accounts Receivable Financing, which functions like a loan, Factoring is an interest free source of working capital. Click here for stories on companies like yours that have prospered with factoring.

How does it work?

Keystone purchases your invoices individually or in bulk and advances you up to 80% of face value within 24 hours. You can immediately use this cash to replenish inventory, meet payroll, pay bills, etc. When your customer pays Keystone 30-90 days later, you’ll receive the remaining 20% less a small factoring fee.  For more information on how it works, click here.

How do I get started?

Just fill out the “Getting Started is Easy” form to the right and we’ll contact you immediately. Or for a formal proposal in 24 hours, click here and fill out our simple 2 page application. If you have any questions, feel free to call us toll free at 877-221-2880 or email us.

How much does it cost?

Each client relationship is priced on an individual basis but generally speaking, we offer some of the lowest factoring fees in the industry. A fee schedule will be included in our proposal to you. Interestingly enough, if you offer early payment discounts to your customers such as 2% 10, you may already be paying more than you will with factoring.

How are fees calculated?

Keystone charges a set fee for every 10 days a factored invoice is outstanding. Most factoring companies calculate fees in 30 day windows so if your customer happens to pay on day 34, you’ll be charged for two full months. Also, Keystone’s factoring fees are fixed and are not tied to volume. In contrast, some factoring companies’ rates increase if you don’t factor a minimum number of receivables per month.

Do I have to factor all of my invoices?

No. You pick and choose which invoices and which customers to submit for factoring.

How is factoring different from a loan?

Because you are not borrowing money but rather selling your receivables, there is no interest to pay on a factoring advance. Unlike bank financing, which places a liability on your balance sheet, or private equity, which gives away ownership in your company, factoring enables you to grow debt free and retain full control. Best of all, we make quick funding decisions whereas banks could take weeks to approve a loan.  To see all the differences, click here.

Do you accept referrals from brokers?

Yes. If you have a lead on a company that may benefit from our factoring services, we will be happy to speak with you about it. Please fill out our contact form and we’ll send you our brokerage agreement.

What kind of experience do you have?

Keystone’s employees and affiliates are experts in their field and have a combined 17 years in the factoring industry.

Do I need to sign a personal guarantee?

No. Unlike banks or other factors, we don’t require a personal guarantee, nor do we require you to pledge personal assets for collateral. You’ll only need to sign a statement guaranteeing invoice validity.

Do you fund start up companies? What if I’ve had a bankruptcy in my past?

We look at your customers’ credit-worthiness, not yours. Because of this, we can approve start ups with no credit history and companies that have experienced bankruptcy. If you have valid business-to-business receivables and stable customers, chances are, you qualify.

Is factoring only used by struggling companies?

Actually, many companies that could qualify for bank financing are choosing to factor instead. They’ve realized that factoring is a quick, debt-free way to release capital tied up in AR.  For real world examples, click here.

How soon can I receive my first funding?

You’ll receive your first funding in about 3 days. Subsequent fundings are processed in 24 hours and wired directly to your bank account.

How long is my contract for? Is there a penalty if I need to stop factoring?

Our agreements are for one year but you can cancel at any time. Our goal is to make you a client for life but we won’t lock you into a long term contract like other factoring companies.

What will my customers think?

The only thing that changes from your customers’ perspective is the “remit to” address on your invoices. You will continue to conduct business with them as you always have. Furthermore, outsourcing your AR management gives your customers the impression that your company is growing. After all, some of the largest corporations in the world use factoring to support growth.

How can I be certain that you will treat my customers well?

We are not a collection agency and we will never hassle your customers for payment on overdue invoices. From a financial standpoint, the last thing we want is for you to lose a customer so we do everything in our power not to disturb the relationships you’ve established.

Can I track my invoices?

Yes. You will have secure access to a number of free tools that will keep you in control and up to date on your account. Your daily transactions will be available online 24/7 and organized into aging reports, collection reports, and reserve reports.

How is your customer service different?

You’ll deal directly with the owner through every phase of the factoring relationship. In order to deliver this level of personalized service, we limit the number of clients we accept. In contrast to our competitors’ high volume, high turnover model, our goal is to retain a small, manageable number of clients by keeping them happy for years to come.

How are you funded?

Most factoring companies are dependent on lines of credit that their banks can pull at any time. The money Keystone uses for factoring is supplied entirely by private investors. This arrangement ensures a reliable source of capital that will grow right along with you.

Do you only fund Florida companies?

Although our offices are in Tampa, St. Petersburg, Florida, we gladly accept factoring clients from all 50 states. Account information is available online and wire transfers are instant so we can deliver the same great service nationwide. And we’ll be happy to meet with you in person, regardless of where your office is located.

What kinds of businesses do you serve?

We work with all business-to-business industries including, service, manufacturing, wholesale, government contracting, janitorial, staffing, technology, medical supplies, security guard, pharmaceutical, and telecommunication.

How can I receive more information on your factoring services?

Just fill out the “Getting Started is Easy” form at the top of the page or feel free to call us toll free at 877-221-2880 for more information. We can also be reached by fax at 727-231-2880 or via email here.