SOLUTIONSS

Payment Solutions 

Are you waiting for your customers to pay their outstanding invoices? You’re not alone. Most of the businesses we work with are experiencing the same cash flow problems you are and they have found help with invoice factoring.

Cash-Flow Support

Invoice factoring offers businesses the highest degree of flexibility when it comes to getting working capital. Invoice factoring gives you the freedom to sell open invoices and receive cash for a set discount fee. Invoice factoring is a financial service used to boost a company’s cash flow.  Invoice factoring is not a loan.  A company sells its unpaid invoices to the factoring company at a discount.  The factoring company provides immediate capital for those invoices. The factoring company now owns the invoices and will collect according to the payment terms of the unpaid  invoices from the customer who is being invoiced, typically 30-60 days.

Working Capital Assistance

Let’s take a look at a sample invoice factoring scenario below to better understand how this type of alternative funding works: A contractor doing maintenance for municipalities is billing for completed work but won’t collect payment for 30, 60 or 90 days.  In the meantime, he needs to pay his employees and purchase materials for his next job. In order to solve his cash flow problem, he chooses to factor his invoices. Once his service is completed, he sends his invoice to the factoring company instead of the municipality, his customer.  The factor verifies completion of work and advances up to 90% of the invoice within 24 hours. The factor sends the invoice to the customer and will collect payment in 30-60 days. Once the factor is paid, the remaining 10% of the invoice value will be paid to the contractor, minus the factoring fee

Project and Contract Based Solutions

Summit Stone provides commercial financial and payment solutions.

We help businesses manage the gap between work performed and payment received through structured financial and payment solutions.