Factoring is the process of selling accounts receivable at a small discount for immediate cash. The seller receives a 70% – 90% advance on their invoice from the factor instead of waiting up to 90 days to collect payment from their customer. The remaining invoice balance, minus the factor’s discount fee, is rebated to the seller when the invoice is paid. For more information on how it works, click here.
You’ll deal directly with an 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. We view ourselves as a partner and consultant in your future growth, not just a lender.
Any company that needs extra cash for payroll or other operating expenses can benefit from the steady, predictable cash flow Keystone’s factoring program provides. It’s a quick, debt-free way to unlock capital tied up in AR.
The first funding is wired to your bank account, usually within 5 business days. Subsequent advances are processed same-day if your request is submitted by 11:00 a.m. EST.
Each client relationship is priced on an individual basis but generally speaking, Keystone offers some of the lowest rates in the industry. A fee schedule will be included in our proposal for your consideration. Some of our clients offset the cost of factoring by building it into their pricing and taking advantage of cash discounts offered by their suppliers.
Keystone was established in 2009 and has successfully factored over $100 million in invoices from a wide variety of industries.
No. Our funding decisions are based primarily on your customers’ credit history, not yours.
Yes, provided you have business-to-business receivables for completed services or delivered product.
We provide working capital to all business-to-business industries including: service, manufacturing, wholesale, government contracting, janitorial, staffing, technology, hospital services, security guard, trucking, construction, and telecommunications.
Although our offices are in the Denver area, we factor clients throughout the US. Utilizing cloud based factoring software and online banking, we deliver the same great service nationwide. And we’ll be happy to meet with you in person, regardless of where your office is located.
Your customers will remit payments directly to Keystone via ACH or lockbox address. Receipts are immediately recorded in Keystone’s factoring software for automatic calculation of fees and rebates.
Rebates (calculated as Receipt Amt. – Advance Amt. – Discount Fee) are wired to clients every Wednesday or earlier upon request.
The only thing that changes from your customers’ perspective is the “remit to” address on your invoices. A letter of introduction will explain that your company is experiencing a tremendous amount of growth and has decided to outsource its accounts receivable management to Keystone, a leader in the field. You will continue to invoice your customers as usual.
We keep our communication with your customers to a bare minimum. It’s usually limited to the AP department for courteous invoice verification and payment status. We do everything in our power not to disturb the relationships you’ve worked hard to establish.
No. You pick and choose which invoices and which customers to submit for factoring. There is no requirement to factor a minimum amount of invoices and the facility can be utilized on an as-needed basis.
You are not borrowing money but rather selling an asset (your receivables), so there is no interest to pay on a factoring advance. Unlike bank financing, which creates a liability on your balance sheet, factoring enables you to grow debt free. Best of all, we make quick funding decisions whereas banks can take months to approve a loan. Click on Keystone vs. Others to see all the differences.
Online lenders such as OnDeck and Kabbage use technology to streamline the approval process but this temporary convenience comes at a steep price. Typical APRs are over 100% and interest is debited from your bank account daily. Click on Keystone vs. Online Lenders for a side by side comparison.
Our one-year agreements can be cancelled at any time. There is no charge to renew at the end of the term and no monthly maintenance fees, regardless of factoring volume.
Most factoring companies are dependent on lines of credit that their banks can limit or pull at any time. The money Keystone uses for factoring is supplied entirely by owners and investors. This arrangement ensures a reliable source of capital that will be there when you need it.
Free AR aging and collection reports are available 24/7 through your online client portal. You can monitor invoices, accrued fees, and pending rebates.
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.
Yes, we pay very competitive commissions and are actively looking to expand our referral network. If you know of a company that may benefit from our factoring services, we’d love to hear from you. Please fill out the contact form on our Broker Page and we’ll email you a commission agreement.