Sometimes an N.T.F. client may not have an immediate need for funding its receivables. For example, an early week submission of invoices but no payroll till the end of the week or periods in between insurance premiums and quarterly tax deposits.
In addition to providing our clients with an immediate cash-flow source for their eligible freight billings (i.e. funding simultaneous to submission), can also provide a deferred funding program for their receivables that effectively lowers the cost of factoring their bills!
You submit your billings and instead of receiving a bank wire or Comchek as processed, you tell us when you want the funds made available to you, and based on your decision to defer our purchase - the commencement of factoring charges is also deferred.
For example, you have a creditworthy customer that has habitually paid their freight invoices within 45 days of billing.
If you were to have wanted N.T.F. to immediately fund a $1000.00 bill, the applicable factoring fee would have been $70 (7%). However, if you didn't need the funds for a couple of weeks, then the maturity funding program would defer the purchase by fourteen days - thereby reducing the period that N.T.F. had its moneys invested in the freight bill, resulting in a reduction of factoring fees from $70 to $40 (4%) for the same bill! Similarly, if your customer habitually paid its bills in 30 days, and you were able to defer the need of cash for two weeks, your factoring fee would drop from $40 to $20 (2%).
These examples illustrate your ability to decrease your costs of factoring based upon your need of cash-flow.
The program follows the same procedures as if you desired immediate funding upon N.T.F.'s receipt of your bills (i.e., original delivery documents / original proof of delivery / your invoice / a rate confirmation agreement when dealing with a third party / an executed Schedule of Accounts (Buy Schedule), but you would make notation of the date you want the bills funded on the Schedule of Accounts. On the day noted, our staff will process the bills and direct the proceeds from the purchase to you.
If you have questions about maturity factoring, or any other part of our factoring program, we are willing to speak with you any time, without the "hard sell." Either give us a call at (800) 624-3353 or fill out our short form so we may contact you.