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WHAT IS FACTORING?

Factoring is an asset-based financing option for businesses
needing capital to grow or improve cash flow to enhance their operations.
Basically, factoring is an opportunity for a company to convert all or a
portion of their accounts receivable (often a sizable asset on their balance
sheet) to cash by selling invoices from their credit-worthy customers
to the factor. The factor looks to your customers for the repayment
of the funds advanced and consequently, their credit-worthiness is
the critical element in the equation. Factoring provides capital necessary
to accelerate the growth of your business and allows you to concentrate
on running your business instead of collecting your accounts receivable.
A good factor will manage your accounts receivable collection function
and will represent you in a positive and professional manner
when dealing with your customers.

301.983.8000
888.224.3035
info@oxfordcp.com


THE PROCESS

After an initial phone conversation, our clients will forward the due
diligence materials requested in our application to us. Our due diligence
will consist of a review of this material and other investigations as deemed
necessary. After acceptance, you will send us invoices with the necessary
supporting documentation for those customers you would like to factor.
You are not obligated to factor all of your customers; however, we do like
all invoices related to a particular customer to be included in our program.

After receipt of the original invoice, we verify the invoice with your
customer and notify their accounts payable department that the invoice has
been assigned to us. We then wire into your account the advance amount,
which is the face of the invoice minus the agreed upon retention. When the
invoice is paid, we subtract our fee from the retained amount and
send the balance to you.

Assuming the due diligence materials are complete, it generally takes 5-7
days to become an Oxford client. Once you are accepted into our program,
funding is available within 24 hours of our ability to confirm the
invoices submitted to be factored.

301.983.8000
888.224.3035
info@oxfordcp.com


WHO CAN QUALIFY?

Factoring is an excellent financing vehicle for companies of all sizes in all
industries. Factoring is not for everyone, but if you are profitable or have
a plan to achieve profitability and fit into one of the following categories,
it may be right for you:

• Start-up entity or one in business for a short period
of time
• Organization experiencing rapid growth
• Seasonal Business
• Over-Leveraged Balance Sheet
• Unable to meet current loan net worth or financial
ratio covenants
• Insufficient Collateral
• Tax liens (assuming IRS will subordinate to the
Factor)
• Inadequate Cash Flow
• VC Backed or IPO Bound
• Acquisition/Buyout Situations
• Loan Workout Situation
• Transition/Turnaround Situations
• Debtor-In-Possession Situations
• Bankruptcy

If you think you may be a candidate for our factoring services,
please feel free to contact us for a free consultation to determine
the appropriate financing products to best help you manage and
grow your organization. If factoring is not right for you,
we will tell you that.

301.983.8000
888.224.3035
info@oxfordcp.com


COSTS / BENEFITS

At first, factoring may appear more costly than traditional financing.
The following benefits can help to reduce the cost when administered
by a professional factoring company as part of an overall
Accounts Receivable Management program:

• Stabilized cash flow can allow you to take
advantage of sizable purchase discounts or
negotiate more favorable terms with your vendors.
• There is no need to offer discounts for early
payment to your customers. Many firms offer 2%
discounts for invoices paid within 10 days. When you
Factor your invoices, you can have funds wired to
your account immediately and the 2% additional
revenue may cover or come close to covering your
factoring fee.
• Hiring Oxford to implement our state-of-the-art
A/R management program will take away the time
consuming job of collecting your receivables and
allow you to concentrate on managing your
business and exploring opportunities for growth.
• Your clients will often pay Oxford faster than they
would pay you. We are on-line with the major credit
reporting agencies and consequently, are often able
to collect on invoices within the initial terms
granted to your customers.
• No need to give up equity.
• No additional liability appears on your balance sheet
and Factoring does not impair your ability to obtain
additional financing. In fact, by demonstrating a
predictable cash flow, you may be better able to
secure needed financing from traditional sources.
• No restrictive net worth or financial ratio
covenants often associated with bank lending.
• Other than an initial $300 due diligence fee, no fees
associated with bank financing apply to factoring.
You will not incur any closing, commitment, or
unused line-of-credit fees.
• No long-term contracts.
• As an Oxford client, you will have access to our
credit evaluation services to help reduce your
exposure to potential credit risk.

You may hire certain professionals such as CPA’s and attorneys to
help manage your business—handling your accounts receivable function
should be no different. Let Oxford Capital Partners help your business
thrive! We will mail invoices and statements, make collection calls, and
free you from the headaches involved with managing an
efficient Accounts Receivable program.

301.983.8000
888.224.3035
info@oxfordcp.com

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