Oil Capital USA is here to serve YOU. If you don’t see answers to your invoice factoring questions here within this invoice finance FAQ’s, please contact us with your questions and we will provide immediate answers.
Accounts Receivable Factoring FAQ’s
What is invoice factoring?
Invoice factoring, also known as invoice financing, is the simple process of getting advanced up to 80% to 90% on your current invoices or accounts receivables. Instead of waiting 30 to 60+ days to get paid, you can get paid within 24 hours and have access to instance working capital.
Why would a company want to use invoice financing?
Rapid growth is one of the primary reasons for invoice financing. Another might be slow-paying customers. Typically, companies that need to improve their cash flow and get paid faster use the cost-effective strategy of invoice factoring.
Who can benefit from invoice financing?
Oil Capital USA works with businesses of all sizes and will work with any commercial business that requires working capital for any reason. We serve most business-to-business industries, which include manufacturing, oil & gas services, machine shops, consulting, information technology, printing, guard services, janitorial, staffing and many more. Invoice factoring can be beneficial for any business. Continue reading our invoice factoring FAQ’s for more information on how factoring can benefit your business.
What do you require from new clients?
Oil Capital USA has a streamlined approval and qualification process for your convenience. By completing one simple form — our Client Profile — along with supporting documentation, you will receive a competitive proposal that, once accepted, results in funds being deposited directly into your account within hours. Oil Capital USA does not require financial statements or tax returns from you — instead, Oil Capital USA reviews your accounts receivables and the creditworthiness of each of the customers you wish to submit for accounts receivable financing.
Is there a minimum dollar amount of invoices that I am required to factor?
No. There are no volume or minimum requirements at Oil Capital USA. Unlike other invoice factoring companies, Oil Capital USA does not increase your rate if you do not meet minimums. We do not employ “teaser rates,” but instead offer the most competitive rates in the industry, guaranteed. Our accounts receivable factoring programs are designed to assist businesses requiring $5,000–$2,000,000 per month in instant growth capital.
Do you require that I factor all of my invoices?
No. At Oil Capital USA, you decide which “customers” and invoices to factor. And, as you take on new customers, we have extensive credit resources and can “credit qualify” your new customer for you within minutes! We work with each of your customers in a professional and courteous manner and want to make the invoice factoring process as simple as possible. For more information about Oil Capital USA and how we can help your business grow, continue reading our invoice factoring FAQ’s.
How long does the sign up for invoice factoring take to get started?
Within hours of receiving your complete application, we will send you a rate proposal. If you accept, we conduct due diligence and may request some documentation. Initial funding can be the next day. The faster we receive all the documents we need and have the necessary signed documents returned, the faster we get you funded.
How do I know which of my customers I can use invoice factoring for?
You choose which clients you want to factor. We determine the amount of credit that can be extended based on our extensive credit resources.
What happens if one of my customers is unable to pay an invoice?
Oil Capital USA routinely collects from most customers without a problem and does pre-credit qualified researches to help guide you. However, occasionally, a customer will not pay an outstanding invoice, and the invoice may be considered not collectable or “beyond recourse.” Invoices such as these may be charged back to you to recover non-payment amounts by your customer, unless you choose a Non-Recourse factoring program.
When you choose a Non-Recourse factoring program and your customer becomes insolvent, we take the risk so you don’t have to.
How much does invoice factoring cost?
Typically, invoice factoring costs just a few cents of each dollar. Oil Capital USA will outline various factoring fee options, and you pick what works best for your company — customized programs are available. We are here to help you along the way, and it’s important to us that you have all your questions answered and are completely aware of all the options you have to choose from. We pride ourselves on offering the lowest rates, credit research, and quick outstanding service unmatched in the receivable factoring industry. If you come across rates lower than ours, we will be happy to try and match or BEAT any competitor’s price.
Why should I choose Oil Capital USA?
All invoice financing or invoice factoring companies are NOT the same. Oil Capital USA is the nation’s leading invoice factoring provider — funding over a billion dollars to thousands of businesses nationally. Our pledge to provide you with superior customer service, the highest integrity, state-of-the-art technology, and the most competitive rates the industry can offer has resulted in our being rated the #1 invoice financing company. Oil Capital USA qualified as one of the Best Places to Work in San Diego, primarily for the culture we provide and teach to our employees. In turn, we expect our employees to treat you like we treat them, so you will receive only the best customer service from Oil Capital USA. We provide straightforward solutions to your cash-flow needs.