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
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
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
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 didnt 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 didnt 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.
Dont 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.
Labor @ 30%
Materials @ 30%
Cost of Funds For New Sales
Added Profit On New Sales