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What is factoring?

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.

How is your customer service different?

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.

Will my business benefit from factoring?

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.

When will I receive my first funding?

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.

How much does it cost?

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.

What kind of experience do you have?

Keystone was established in 2009 and has successfully factored over $100 million in invoices from a wide variety of industries.

How do I get started?

Click here to begin filling out our simple online application or click here to call or email us with any questions. Once the application is received, we’ll send you a formal proposal within 24 hours.

Do I need good credit to qualify?

No. Our funding decisions are based primarily on your customers’ credit history, not yours.

Do you fund startup companies?

Yes, provided you have business-to-business receivables for completed services or delivered product.

What industries do you serve?

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.

Do you only fund Colorado companies?

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.

Where are invoice payments sent?

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.

When will I receive rebates?

Rebates (calculated as Receipt Amt. – Advance Amt. – Discount Fee) are wired to clients every Wednesday or earlier upon request.

What will my customers think?

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.

Will you contact my customers?

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.

Do I have to factor all of my invoices?

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.

How is factoring different from a loan?

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.

How do you compare to online lenders?

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.

How long is the contract term?

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.

How are you capitalized?

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.

Can I track my receivables and fees?

Free AR aging and collection reports are available 24/7 through your online client portal. You can monitor invoices, accrued fees, and pending rebates.

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 accept referrals from brokers?

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.

How can I get more information?

Feel free to call us at (303) 209-9321 or click on Contact Us to email your request.

Keystone Capital Funding, 14143 Denver West Parkway, Suite 100, Golden, CO 80401