How does the Factoring Process Work?

 Schedule Of Accounts

You invoice your customer when the work is completed and/or the final product is delivered or shipped.

You would then fill out the "Schedule of Accounts" and send it along with copies of the invoices to Northwest. The original invoices must include calculations of the amount due and the Schedule of Accounts must be stamped with your name, signed, dated.

Northwest will advance up to 80% of the scheduled total. The amount not advanced is called the reserve account.

Remember...to sell Northwest  only those accounts receivable that have a good and proven payment record. Your company will be required to purchase back any invoice that was sold to Northwest and not collected within the predetermined number of days from the "Schedule of Accounts" "Purchase Date."

  Reserves Refunded To Your Account

Upon payment of an invoice, Northwest will normally issue reserve checks (for the portion not advanced on a scheduled purchase) and deposit them into your account once a week. Note: With Northwest there are No Minimums. You are  Not required to sell all of your invoices to us. You are  Not required to sell a certain amount of invoices for a certain period of time. You decide which invoices to sell and when to sell them.

  Paperwork Is Promptly Forwarded To You

With each schedule submitted you will receive a computerized report of the transaction With each check deposited you will receive a computerized report of the transaction.

Weekly you receive a report on the overall satus of your account.

We appreciate your business and we work hard to make sure your account is serviced with a personal touch.

 Straight Talk About Actually Making Money With Your Business!

Statistics vary, but a high percentage (over 70%) of businesses fail in their first few years of operation. In many cases it is because they didn’t have the working capital they needed when they had the opportunity to increase their sales. For a few years they made a living and broke even, then something happened. Their sales during their busy season were slow, they became ill, their equipment broke down, etc. When they had a chance to do more business and make real profits and have some retained earnings they passed because they didn’t have the capital. As you can see in the chart below a 20% increase in sales above breakeven makes a dramatic difference in retained earnings. Don’t focus on the cost to finance which is a minimal percentage of sales but look at the opportunity to do additional business and insure your long term success.

Sales of

Labor @ 30% Materials @ 30% Overhead Gross Profit Cost of Funds For New Sales Added Profit On New Sales

500,000 150,000 150,000 200,000 0

600,000 180,000 180,000 200,000 40,000 - 4,000 36,000