One Fee Factoring Solutions
How One Fee Factoring Can Transform Your Business
When you’re worried about cash flow – you’re not working on growing your business.
MP Star can help. Instead of waiting for checks or borrowing on credit, get the power of factoring to work for your business – with funding for operating your business, meeting payroll and other costs.
One Fee Factoring is a type of invoice factoring or asset-based lending where companies are able to improve cash flow by selling their invoices or accounts receivables. In simple terms, companies “factor” to turn their invoices into cash to operate and grow. The main difference between factoring and traditional bank lending is the collateral used and the way payments are made. A bank loan is usually made against real estate, equipment and other hard assets. Factoring is made against unpaid invoices for services rendered or products sold.
Invoice factors gives you an edge over slow-paying big customers and their net 30, 60, 90+ payment terms. You can access unlimited capital by putting your large receivables to work (more cash) so you can ramp up your operations (more growth).
Invoice factoring works differently than traditional loan-based financing. With factoring, a business does not take on any new debt. Instead, with factoring, a company receives funds based upon its outstanding receivables. In other words, your company quickly gets money for work you’ve done and invoiced but, for which you have not yet received payment. Even better, you’ll receive these funds within 24- to 48 hours of submitting invoices.
5 Reasons Why MP Star is Your One Fee Factoring
While there are many companies out there that provide factoring services, only MP Star offers “One Fee Factoring.” One Fee Factoring simplifies the factoring process, removing the extra fees and hidden charges that make other seemingly less-expensive options so expensive.
Some financing companies promote things like “rates as low as 1%” or other such gimmicks. The truth is that those companies are absolutely making their money off of their clients. If it’s not in interest, it may be in hidden fees, or rates that adjust higher after a certain period of time.
Here are a few of the fees and conditions to watch for in the fine print of any factoring contract, which demonstrate how One Fee Factoring is different:
- Term Obligation – These may require you to factor longer than is profitable. MP Star has no term obligations.
- Cancellation Fees – If you cancel your contract with the other guys, expect to pay expensive cancellation fees. At MP Star, you can cancel at any time, no fees charged.
- Minimum Amounts Borrowed. – Minimums often force you into factoring more than you want to. At MP Star, you can get what you need with no minimum required.
- New Client Fees – Some companies pass the expense of enrolling a new customer onto the new customer. At MP Star, we’re glad to have you as a client. Though there are costs involved in getting a new client started, we never pass that expense on to you.
- ACH Transfer Fees – Banking technology is faster and less expensive than ever. While some firms charge clients to have funds transferred into their account, MP Star handles that for you at part of our service.
In fact, here’s a link to a PDF that shows an actual contract and how they try to sneak in those extra charges →
Instead, here’s an example of how MP Star’s One Fee Factoring works. Let’s assume that your company has a corporate customer that normally pays within 30 days after invoice – and you invoice them for $10,000. By factoring their accounts receivable, your company can receive an advance in a matter of hours. Here how the math works:
- Your company’s invoice amount = $10,000
- Multiplied by MP Star’s cash-advance rate of 80% = $8,000
- Less an initial One Fee Factoring Fee* of $250 = (250)
- Your company gets an advance of $7,750
- The balance of the invoice is held in escrow = $2,000
- The rest of the funds are forwarded to your company = $7,750
Instead of waiting the full 30 days for your customer to pay that $10,000 invoice, with One Fee Factoring, you can start using $7,750 of your customer’s invoice for your business today. And when your customer pays in 30 days, the amount held in escrow $2,000 is refunded.
Wondering if you’re actually paying too much for that advertised 1% rate? We’re happy to take a look at your contract and show you where you might be overspending – it can add up to thousands. Email us at firstname.lastname@example.org.
And if you’re wondering whether or not you might qualify for something like invoice factoring, let’s find 10 minutes to have a quick conversation or you can complete the secure online application to get started.
How One Fee Factoring Works
You sell your invoice or accounts receivable to MP Star, then we turn (factor) your invoice into cash to operate and grow (with only One Fee, which means simple math and no hidden fees).