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Factoring Won't Cost Too Much!

Are you PASSING UP SALES on new larger ticket contracts or orders due to lack of cash?

Do you not pay SUPPLIERS on time and miss up front, volume, or early pay discounts?

Are you having a hard time meeting PAYROLLS on time?

Have you had a hard time paying TAXES on time?


PASSING UP SALES due to lack of cash?

Increased Sales  =  Increased Profits

The most dramatic impact of factoring is to allow you to fund sales beyond breakeven where your profit margin now goes to the bottom line instead of covering overhead.


Variable Costs / COGS

Gross Profit

Fixed Costs / Overhead

Net Profit

Approx. Cost To Factor *

Money In Your Pocket






















% Of Sales



25% 17% 12.5%

5% 13.5% 17.5%

N/A 1.3% 2%

5% 12% 15.5%

How are you going to complete the order or sale if you don't have money to get the materials and pay for the labor and taxes? This is where Northwest steps in: By giving you cash for monies tied up in accounts receivable now!

Don't pass up opportunities!

The customer may not contact you again so you won't only miss this sale but possibly future ones because the customer may assume you can't do future projects either.

Remember you can't give the best service, have the highest quality, and the lowest price. Companies that do go out of business. Your customer expects service and quality at a fair price. If they want you to in essence be their bank you can probably include the cost of financing in your pricing.

Factoring is like having my customers pay for labor and materials as soon as the billing is done!

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NOT PAYING SUPPLIERS on time and missing up front, volume, or early pay discounts?

Decreased Costs  =  Increased Profits!

Take Advantage of Up Front Cash Discounts!

Many times there are cash discounts of up to 5% that you can take advantage of. With an average cost of 2% for 15 days to obtain the funds you can actually save money on materials.

Take Advantage of Volume Discounts!

Do you know what materials you will need for the next 30 days? Make one purchase from you supplier and get a volume discount of 10% or more. With an average cost of 4% for 30 days you can save on materials!

Take Advantage of Early Pay Discounts!

Most supplies offer a 2% net 10 discount if you pay by the 10th of the month. With an average cost of 2% for funding you won’t make money but you will build your credit rating for future line increases which will decrease costs.

Build Your Credit Lines for FREE Working Capital!

One of the biggest mistakes a company can make is not building a good credit history. When the busy season comes, they would like more credit, their suppliers credit manager cannot approve the increase due to a poor pay history. With a good credit history you can virtually double your supplier credit for a 30 day period during your busy time.

Order Larger Volumes to Save on Freight!

One of the hidden savings is when you can ship in larger quantities. You can not only get volume discounts but can cut back on the number of freight bills by having fewer shipments and not paying higher less than full load rates.

Having a hard time meeting PAYROLL?

Avoid Cost Increases   =   Maintain Profits

Avoid Loss of Productivity

Is it reasonable to expect employees to give a 110% effort when they are not sure when they will be paid, or whether their check will be good? Having employees wait to cash their checks for a few days can help cash flow but it has serious drawbacks. Loss of productivity is the usual one. If it happens repeatedly normally employees will look to go elsewhere.

Avoid Costly Turnover of Help

How costly is it to loose an employee? First have to spend money to market for a replacement. Then you have to spend a lot of valuable time with the interview process. Finally after you have found the right person you then have the expense of training the new employee. Also a new employee is never as productive as the old one until they are trained.

Obtain Peace of Mind

One of the most difficult challenges an owner must face in business is meeting payroll deadlines. This is the one area that is not strictly business, to the employee a paycheck is a personal matter. Monies in accounts receivable do not meet a payroll. It is hard to put a price on the peace of mind that being able to meet payrolls on time brings. Usually it frees your mind to concentrate on other more productive matters like making sales.

Having a hard time paying TAXES on time?

Contain Costs   =  Maintain Profits

Avoid Penalties and Interest Expenses.

As you gear up, your tax liabilities gear right up with you. Labor & Industries, Unemployment, Federal withholding, FICA, FUTA, B&O and state sales taxes all increase. Since taxes are not directly related to physically getting the job done and out the door, usually they are the last thing to get taken care of. Thus, you incur costly tax penalties and interest charges. Avoid those penalties and interest charges that add to costs and cut into profits.

Protect FREE Working Capital.

Delinquent tax payments are a matter of public record. Today, most credit granting institutions have records of any and all tax delinquencies. This can have a large impact in the future when you try to obtain credit from new suppliers and vendors. If new suppliers or vendors turn down your credit, you miss out on new free working capital. In addition it probably will hinder you from getting increases in credit from your current vendors which also will limit your free working capital.

Protect Ability to Obtain Equipment.

As you grow, sooner or later you will need to obtain additional equipment. You will want long term financing for this equipment rather than using your short term capital to avoid causing cash flow problems. A credit history with delinquent tax problems will make obtaining financing for this vital equipment more expensive or in some cases virtually impossible to obtain. Maintain your credit rating and prevent increased costs.

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