secure receivable financing

Receivables Financing FAQ

Receivables Financing, which is also known as Factoring, provides businesses the option of receiving upfront funding for their invoices rather than waiting 30, 60 or even 90 days to receive payment. It is not a loan, but rather an advance of the invoiced amount minus a small fee, called a discount, and a refundable reserve between 5% and 20%, depending on your clients' credit standing and payment history. The reserve is refunded when the invoices are paid.
Once the factoring agreement is signed, initial funding typically occurs in three business days or less. After initial funding, subsequent funding occurs, on average, the same business day. Variations may occur based on the amount requested and complexity of the case. Our cash flow experts will walk you through the specifics and provide a concrete timeline.
When opening the line, there is a one-time $65 UCC Search and Filing Fee. We purchase your receivables at a small discount and hold a refundable reserve, which starts at 5% of the invoice value, during collections. The reserve is returned to the business when the corresponding invoices are paid. Discounts are small fees charged to cover the costs associated with providing this service. The amount of the discount starts at 1%. Estimate your cash advance amount.
Factoring from Capital City Bank transforms your receivables into cash you can put immediately to work in your business.
Here's how it works:
  1. You invoice your clients for products or services provided.
  2. At the same time, submit your invoices, and Capital City Bank purchases them at a small discount, advancing you up to 89% of the invoice value. A reserve between 5% and 20% is held as a refundable deposit only until the invoices are paid. Reserve and discount amounts are based on your clients' credit standing and payment history. Estimate your cash advance amount.
  3. Capital City Bank sends 30 and 60-day collection letters on your or Bank letterhead according to your preference.
  4. The reserve is returned to you when the invoices are paid.

  1. factoring for your business
At the end of the 90 days, any unpaid invoices are offset with your collective reserves and transferred back to you.
As invoices are paid, the amount of the reserve associated with those invoices is returned to you. The amount held in reserve is adjusted as factored invoices are paid and new invoices are sold.
No, the discount is a fee that helps cover the costs associated with providing this service, including assistance with collections and reporting. Discounts start at 1%. Estimate your cash advance amount.
Discounts start at 1% and reserves start at 5%. Both are calculated based on the credit standings and payment histories of your clients. Estimate your cash advance amount.
Invoices purchased via Factoring will be paid directly to the Capital City Bank lockbox, but all communications are sent on your company letterhead, preserving your relationship, if that is your desire. We provide our contact information when invoicing on your behalf, so any questions come straight to us.

Be more competitive while improving your cash flow, credit rating and supplier discounts Waiting 30+ days for payment on an invoice ties up your working capital. With Factoring from Capital City Bank, we advance you those funds so you don't have to put your business on hold. Use it how you need it: meet payroll, grow your company and pay suppliers.
Factoring pays cash for your receivables in minutes, not months. A quick and easy solution to your cash-flow challenges.
Capital City Bank buys your accounts receivables and advances you up to 90% of that amount to cover your expenses and invest back in your business. It’s an asset, not a liability, so there is no interest to pay.
By transforming your receivables into cash, Factoring gives you the means to reinvest in whatever your business needs to grow using assets you already own.
Get the cash you need to pay those you owe sooner than with standard invoicing. Then take advantage of early payment discounts.
We take on the collections risk and responsibility so you can redirect your time and your staff toward sales-generating activities. We send 30 and 60-day collection letters and provide regular status reports. Plus, our secure web portal allows you to log in and view your reporting in real time.
Because you're not locked in to a long-term contract or a rigid loan agreement, you have the flexibility to adjust your line as the demands on your business change.

Our cash-flow experts are equipped to analyze your situation and structure an effective solution for you. To get started right away, contact us at 850.402.7537 or in a new Window).