we make your cash flow
promotional capital
Financing Fundamentals  :  The Funding Process

The Funding Process

Your Ongoing Partnership with Promotional Capital LLC

How Accounts Receivable Factoring works: Accounts Receivable Funding or Factoring provides an effective source of instant working capital to help your company reach its financial goals. If you decide that invoice financing is the right decision for your company, Promotional Capital will purchase the financial rights to your company's accepted and verified invoices. Remember, we primarily focus on the credit quality of your customer, not the credit quality of you or your business.

After you decide to work with Promotional Capital, business between you and your customers' proceeds as usual. The only exception is that Promotional Capital's remittance information will be included in the invoice and we will handle payment processes for those customers you choose to finance.

  • Submit a Purchase Order (P.O.) Funding Request: Should you need to pay suppliers up-front for any of your orders, you will first submit a P.O. funding request including supporting transaction documentation (client P.O., supplier P.O., sales order, artwork, proofs and the like). Upon approval, Promotional Capital will verify that the order is approved for production. (NOTE: all of your customers with orders requiring Purchase Order Financing must be pre-approved by our standard Accounts Receivable Factoring underwriting process.)
  • Provide Goods/Services: Your company supplies merchandise or services to your customer and then creates an invoice on your own billhead, per your usual business cycle.
  • Submit Your Final Accounts Receivable Factoring Request to Promotional Capital: Your company presents a funding request to Promotional Capital, including a schedule and Assignment of accounts and supporting documentation (client invoices, supplier invoices, shipping documents, etc.) for each invoice you would like to finance. For a pre-approved customer, Promotional Capital will verify that the merchandise and/or services have been delivered satisfactory. If this is a new customer, Promotional Capital will first run a credit check before agreeing to finance and will then confirm completion of services. You may submit more than one funding request at a time.
    Note: To simplify and speed up the purchase of your accounts receivable, it is best to provide a comprehensive list of those customers who are likely to be financed ahead of actually processing your funding request. This allows for pre-approval of their credit and timely payment of your funds.
  • Cash Advanced to Your Company: For those invoices that it chooses to purchase, Promotional Capital forwards your company usually up to 80% or more of the total invoice amount (less any payments made to supplier if P.O. Financing), usually within 24 hours.
  • Issue of Invoice to Your Customer: After approval from Promotional Capital, you issue the invoice(s) and notify your customer that their accounts receivable have been sold to—and will be collected by—Promotional Capital. This is usually noted on the "remittance information" section of your invoice (with your billhead), or from stickers provided to you by Promotional Capital.
    Note: Your customer will also receive a standard notification letter describing the remittance information with their first invoice to be financed.
  • Collection Services Provided by Promotional Capital: Promotional Capital assumes the collection/follow-up and bookkeeping responsibilities, including posting invoices, entry of payments, deposit of checks, and posting regular receivables reports on the Web. With sensitivity to the unique relationship between you and your customers, Promotional Capital provides courteous, professional and efficient services. We will come across to your clients as an extension of your business.
  • Payment to Promotional Capital: Your customer makes payment(s) directly to Promotional Capital's lock box.
  • Reserve Returned to Your Company: Upon full payment by your customer, Promotional Capital forwards the remaining balance (the collected amount less the advances to you) minus the discount fee twice a month.
  • Business Loans: Receive a lump sum payment, then there is an automatic direct debit payback from your checking account and/or merchant credit card proccessor.

Ready to get your cash flowing?

Apply today for promotional capital financing!

© Promotional Capital LLC     Powered by Dynamics Online