Capital Solutions Bancorp vs. Traditional Factoring

Important Issue/Variable Factoring 1 Capital Solutions Bancorp
Type of contract Annual/biannual Open (you can leave anytime)
Early termination penalties Yes None, zero
Line size Limits set annually Only limited by amount of invoices you run through us
Collections Factor does them (usually heavy-handed) You continue doing them as you do today
Statements to your customers Factor sends Never sends
Invoices to your customers Factor sends You send
Which invoices to have funded Factor usually requires all You decide according to your needs
Which customers to have funded Factor usually requires all You decide according to your needs
Fees Multi-layered, difficult to predict and verify; many Factors still charge a fixed/flat rate which is VERY expensive Single layer, directly proportional to time; very straight forward and easy to verify
Minimum monthly fees Yes Never
Invoice notation fee Yes 2 Never
Sign-up fees Usually $1,500 non-refundable $350 totally refundable when you leave the relationship
Who you deal with, contact person Clerical person Start off with our CEO, then Operations Manager. Always someone with a brain.
Personal guaranty Always No
Can you call lender's references? Rarely Always
Diversification Maximum concentration is usually 25% to 30% Is rarely an issue for us
Your customer's credit limit Factor establishes credit limit for each one of them Rarely an issue
Submit tax returns Quarterly Never
Submit corporate financials Yes, monthly Never
Audits Yes (and you pay for them) Never
Does the lender provide reports? Yes, but frequently varies; spotty Yes, unlimited, so you have both full detail as well as broad information of your account; via fax or online 24/7
Wire transfers Usually $35 each $15 each
Startup turnaround time Usually 15 to 20 days Usually 5 days, rarely over 10 days
Satisfaction guaranty Never YES!
1 Of course, there are various ways in which Factors structure their deals. Here we detail what is most common in the factoring trade.
2 Factors often charge a penalty if you don't make the invoice out correctly.

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What Our Clients Say

PolyFlex Products Testimonial Letter

PolyFlex Products

When we started this program, you indicated your team was there to transition us over to a more conventional working capital arrangement in time. It actually happened very fast, and the new program is working well... I just wanted to thank you and your whole team for the professional manner in which you handled our account.

R.P. Campbell

Cosmopolitan Staffing Services Testimonial Letter

Cosmopolitan Staffing Services

...Everything you had said and promised verbally during our negotiation process had materialized... You and everybody at Capital Solutions, have been very honest and I would highly recommend you to any of your potential clients.

Criel de Mesa
President/CEO