A Breakthrough Factoring Company
Offering Factoring Programs Tailored
to Make You More Money 


Factoring History

Welcome to factoring. Whether you own a business,
look forward to building one or are looking for new financial
tools for your current employer, Factoring can help you reach your financial goals.

Factoring has the ironic distinction of being the financial backbone of many of America's most successful businesess. Why ironic? Because factoring is not taught in business
colleges, seldom mentioned in business plans and is relatively unknown to the majority of American business people,
yet it is a financial process that frees up billions of dollars
every year, enabling thousands of businesses to grow and prosper.

Factoring is the process of purchasing commercial accounts receivable(invoices) from a business at a discount. Business practices today dictate that in order to get business you, as a provider of goods and services, must extend terms to your customers.

These terms can squeeze the life(and cash is the lifeblood of any business) out of a new or struggling company.

Factoring has a long and rich tradition, dating back 4,000 years to the days of Hammurabi. Hammurabi was the king of Mesopotamia, which gets credit as the "cradle of civilization." In addition to many other things, the Mesopotamians first developed writing, put structure into business code and government regulation, and came up with the concept of factoring.

After a while, Hammurabi and the Mesopotamians went the way of extinct civilizations, but factoring endured. Almost every civilization that valued commerce has practiced some form of factoring, including the Romans who were the first to sell actual promissory note at a discount.

The first widespread, documented use of factoring occurred in the American colonies before the revolution. During this time, cotton, furs and timber were shipped from the colonies. Merchant bankers in London and other parts of Europe advanced funds to the colonists for these raw materials, before they reached the continent. This enabled the colonists to continue to harvest their new land, free from the burden of waiting to be paid by their European customers.

Recognize that these were not banking relationships as they exist today. If the colonists had been forced to use modern banking services in eighteenth century England, the process would have been much slower. The banks would have waited to collect from the European buyers of the raw materials before paying the seller of these goods, the colonists. (And at that point, who needed the bank?) This was not practical for anyone involved. So, just as today, the "factors" of colonial times made advances against the accounts receivable of clients, enabling the clients to continue with their operations, long before they had been paid for what they were sold.

With the advent of the Industrial Revolution, factoring became more focused on the issue of credit, although the basic premise remained the same. By assisting clients in determining the creditworthiness of their customers and setting credit limits, factors could actually guarantee payment for approved customers.

This is known as factoring without recourse(or non-recourse factoring)and is quite common in business today.

Prior to the 1930's, factoring in this country occurred primarily in the textile and garment industries, as the industries were direct descendants of the colonial economy that used factoring so specifically. after the war years, factors saw the potential to bring factoring to other forms of invoice-based business and the expansion began.

Today, factors exist in all shapes and sizes: as divisions of large financial institutions or, inlarger numbers, as individually owned and operated entreprenurial endeavors.

Many of these private factors sprung up in record numbers as interest rates rose to new heights in the 60's and 70's. This trend intensified in the 80's, primarily due to the increasing impact of interest rates and changes in the banking industry. With banks becoming too expensive and too inflexible due to heavy regulation(remember the Savings and Loan crisis?), the small businessperson was forced to find other sources of financing for expansion and growth. As more and more banks stop befriending the small bussinesperson, factoring is becoming an increasingy popular option.

This year alone thousands of businesses will sell billions of dollars in accounts receivable, and they are doing it for profit, growth, and in some cases , their very survival.



GET YOUR CASH TODAY
Call our factoring specialists at
1-866-593-2195

Email Us

On-line Factoring Request Form





We Can Offer You What Others Can't

Unlike other factoring companies, our program includes the following features at no additional charge:

24 hour funding on approved invoices
Highest advance rates in the industry
Credit analysis on new and existing customers
Continuous collection management and follow up on    factored invoices
Invoice and statement mailing (postage included)
Account status inquiries anytime;
  24/7 online account access.
  
We allow you to electronically submit Invoices
Free credit checking on new customers at no   additional cost

Also
 Personalized Service - you have one dedicated person   and his or her assistant who handle your account.  
  You don't have to start over each time you call
  with a new person
We are seasoned professionals with an average  of 11   years industry experience per account executive   
  (Well above the factoring industry norm)


Our flexibility allows you to maintain control:

You select accounts you prefer to factor on an invoice   by invoice basis.
You control total factoring costs by only factoring on an    "as needed" basis.


Up to 97% Advance Rates:

Advance rates are based on overall risk associated with a particular industry as well as experience and track record. We hold reserve accounts to accommodate industries which typically experience dilution and that we would otherwise not be able to service. Advance rates range from 80% to 97% of the gross invoice amount.

Fee Structures:

Fees are determined based on your industry, the credit worthiness of your customers, how quickly your invoices turn, and monthly factoring volume.

GET YOUR CASH TODAY
Call our factoring specialists at
1-866-593-2195

admin@factormoney.com
On-Line Factoring Request Form

Are We Crazy?
Use No Other
Factoring Company
Until You Have Seen
Our Sensational Plans, including unique
97% Advance Rates


GET YOUR CASH TODAY
Call our factoring specialists at
1-866-593-2195

Email Us

On-line Factoring Request Form

"Vital Force Factoring has always provided service above and beyond any other company I have dealt with. Our account manager gives us 100% and this is only ONE of the reasons we have chosen to stay with them."

-L.P., Vice President security services company

Why Factoring is Necessary
"A sale is not a sale until you collect the money"
Are you a part -time banker for your customers?
Take a look at your accounts receivable aging....

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Is Factoring For You?
The key to knowing if factoring is for you is to not to look only at the bottom-line factoring fee, but also to consider how your company may increase it's profits through factoring.

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Factoring Benefits
Receive money in as few
days as two to four days.

Maintain complete control
of your business.

Remove or lessen the business costs
associated with the collection process.

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