- Do I have to fund all Accounts Receivables?
No, you have the option of funding all customers of your company, or a select few to meet your working capital need.
- What is the cost?
The cost depends on the following: 1. The total size of the working capital facility needed to fund your company 2. The financial quality of your company 3. The average collection cycle of your accounts receivables. Our Cash Flow programs fit the niche between traditional bank financing and alternative markets (factors). The fee is a percentage of the funding volume. The rate depends on your financials and terms. Once we have your complete financial package, we can have a proposal to you within 48 to 72 hours.
- How does it work?
The simple example is if you have a $1,000 invoice, we advance $900 to your company and place $100 in a bad debt reserve. When the invoices pays, the $100 is released to your company, less the fee.
- How are payments and collections handled?
Your customers make their checks payable to your company but mail them to our payment remittance lockbox. We apply the payment to your account the same day that it is received. Additionally, your company maintains and continues its own collection procedures with your customers.
- How does my company qualify?
We collect a standard Bank financial package along with current Account Receivables and Account Payable reports. If we determine that we can help your company, we will provide a proposal with the pricing and basic structure of the program. If accepted by you, we start the underwriting process toward gaining approval to give you better “Cash Flow!”.
- How long does it take?
Our credit team meets every Monday morning; thus, we can generally have your company funding with Cash Flow in approximately seven days.
- How quickly can I get my invoices paid once I sign up with Cash Flow?
Once you are up and running on the Cash Flow Program, we typically fund invoices within 24 hours of receipt – often the same day.
- What is your maximum facility limit?
Our working capital credit facilities range from $100,000 to $5,000,000. We also have peer banks that do participations with us on working capital facilities that exceed $5MM. Thus, we can grow with you for a long time. The companies we work with generally have sales revenues ranging from $1,000,000 to $50,000,000.
- How do I request funding?
Once approved and your account is set up, you’ll import a funding spreadsheet and copies of your invoices. Generally, we try to fund the same day or within 24/48 hours.
- Do I change banks?
No, you keep your checking and operating account with your local bank. We deposit into your local bank account by ACH (free of charge) or by Fed Wire ($10).
- What happens if I terminate my relationship with Cash Flow?
If you terminate within six months, the termination fee is minimal. After six months, the termination is $0.
- Do I have a long-term contract with Cash Flow?
No, we do not have long term contracts. Your working capital facility renews every year on your anniversary date. Since we do not have long term contracts, you’ll never be charged “unearned fees or minimum commissions” if you no longer need Cash Flow.
- Why should I use Cash Flow and not another factoring company?
Cash Flow is a Subsidiary of top-rated Chesapeake Bank. We are a safe, federally regulated, low-cost option for company’s who need improved cash flow. Because of our excellent pricing and customer service, our average customer stays with us for over five years.
- How long has Cash Flow been in business?
Cash Flow started offering financing options to businesses in 1995.
- Are you MemberFDIC insured?
Yes. We are also members of the International Factoring Association and the American Factoring Association.
- What do your existing customers like about Cash Flow?
We keep it simple! Once approved and funded, the only expense you have is the interest expense. Unlike many funding sources, Cash Flow does not surprise you with hidden and crazy fees. Our customers like us because of our easy and straight forward approach of doing business together.
Need help? That's what we're here for. Speak to someone with our Cash Flow team directly by calling 855-717-6400