Crown Financial: Approved for Government Contract Factoring

Crown Financial in Houston, Texas has 25 years of experience in business financial services, specializing in invoice factoring and accounts receivable financing.  We are proud of the solid foundation, wealth of knowledge, and strong relationships we have built over the years. A testament to our viability is our approval for government contract factoring.

 

Experience You Can Trust

At Crown Financial, we understand how lucrative your government contracts can be! Securing a government contract is a huge step to growth, security, and increased visibility for any business owner. Let those contracts work for you by factoring your government contract invoices with Crown Financial. Our reputation precedes us as an honest, trustworthy partner to help you get the most for your money.

 

Knowledgeable

As with any government contract, there is a long list of government purchasing regulations that must be met. Crown Financial is intimately aware of these regulations and will always abide by the Federal Acquisition Regulations and theguidelines laid out in the Assignment of Claims Act. You can trust your federal, state, and local contracts are in good hands with Crown Financial.

 

Committed to You

Our mission is to “Help Your Business Do Business.” We understand how important those government contracts can be, and we want to do everything we can to be the best factoring company in Houston – helping you get the capital you need to grow your business. We would never do anything that would jeopardize your relationships or cause you to lose these precious contracts. Honestly and integrity are at the root of all we do.

 

If you have recently secured a government contract on the federal, state, or local level, start maximizing your capital today with invoice factoring from Crown Financial in Houston, Texas. We know the ins and outs of the factoring process so that you can focus on what matters – your business.

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Do you know your Factoring Agreement Terminology?

Last week, we discussed fees that you may see listed in your factoring agreement. This week, let’s talk about the agreement’s wording.

 

The factoring agreement – or contract – is a legally binding document drawn up by lawyers. And as is the case with contacts and documents of the sort, many of the terms listed can be confusing to the average reader. While this list is not exhaustive, understanding these commonly used terms will get you on your way to reading and comprehending your contract, and making sure you are getting the most out of your factoring agreement:

 

General Terms

Overarching terms that will be used throughout the document to address the parties involved.

·      Invoice Factor: Invoice factoring company, such as Crown Financial in Houston, Texas

·      Client: A client is you, the business owner.

·      Debtors or Accounts: Your business’s customers

·      Approved Accounts: Your customers that you are vetted as reliable payees, and the pool of companies from which you can invoice factor.

 

Financial Terms

Specific terms related to the exchanging of funds between you and the invoice factoring company.

·      Advance Rate: This is the percentage of money you will receive when an invoice is factored, generally around 80%.

·      Credit Line/Limit: Maximum amount of money you can fund through factoring.

·      Customer Limit: Just like a credit limit, but it is applicable to a specific company you work with.

·      Factoring Commissions: Specific fees that are payable to the invoice factoring company. These may be listed as monthly, yearly, one-time payments, etc. Be aware of the timing and frequency of these fees, because it matters just as much as the rates themselves.

·      Assignment: When an invoice is “assigned” to the factoring company for payment.

·      Minimum Annual Commission/Commitment: Minimum amount you must invoice factor per the term limit set, generally a year. Note: this means that if you decide to stop factoring invoices before the minimum is met, you may still owe more money, making your factoring less lucrative.

·      Recourse Period: The length of time a factoring company will keep your invoice open before requiring you to close it out, normally somewhere between 60-120 days.

·      Misdirected Payment: A payment that is paid by your clients to you vs. the invoice factoring company.

 

When working with a factoring company in Houston, be sure they are open and honest with you about all the contract details. Crown Financial has been in business for 25 years, and we are happy to walk you through the entire factoring process – from frequently asked questions to getting the factoring agreement signed. Give us a call today to get started!

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