Haskin Capital Group : Frequently Asked Questions
Frequently Asked Questions
What type of loan will you provide?
Haskin Capital will arrange Accounts Receivable, Inventory, Equipment and Select Account Financing. Our typical customers are businesses with bright futures who face challenges such as under capitalization and lack of consistent profitability.
What are your interest rates?
Rates start as low as prime + 2 with a low monthly administration fee. Rates for select account financing start as low as 2% per month. Rates on both plans are calculated on the average daily balance.
What is the difference between Accounts Receivable financing and Select Account financing?
Accounts Receivable financing permits the client to assign and borrow against all accounts receivable. Select Account financing allows a client to borrow against specific accounts.
Do you notify a borrower’s clients of the assignment of accounts?
Accounts Receivable financing plans normally do not require notification. We realize how important it is for a growing company to maintain confidentiality. Collections are made directly by the borrower on behalf or the underwriters, or by establishing a lock box arrangement.
What makes the loans we arrange different?
The interest rate is calculated on the loan balance rather than the collateral balance. Generally, financing costs are significantly lower than factoring. The most important difference between our underwriters and factors is that they normally they do not require notification of assignment to a borrowers accounts.
Is it necessary to borrow against all receivables?
No. Clients may borrow only when and as they need to for working capital. Interest is calculated only on the average daily loan balance.
Are Government and Foreign A/R eligible for financing?
Yes, government receivables are normally eligible for financing as well as foreign accounts that meet reasonable credit criteria.
How much will you loan a company?
Haskin Capital can get loans ranging from $25,000 to $20,000.000.
What are some of the benefits of financing receivables?
Receivable financing can enable a company to increase inventory, finance growing sales, meet payroll and operating expenses, purchase new equipment, and take advantage of trade discounts.
Are changes in accounting procedures required?
No. When financing receivables you will invoice and collect your accounts as usual. At the same time, copies of invoices are sent to our underwriter for each advance. When payments are received, they are forwarded and applied as payment to the loan.
How long does it take to obtain funding from factors?
Normally, we can pre-qualify a prospective borrower within 24 hours of application and arrange funding within 5 -10 days. Once an account is established, we provide loan advances within 24 hours of assignment of accounts.
Accounts Receivable Financing or Factoring?
The primary difference between accounts receivables financing and factoring is that factoring firms purchase the receivables outright taking ownership of the receivables whereas accounts receivable financing (aka A/R financing) firms place liens on the receivables but the client retains ownership. The A/R financing firm then provides a line of credit to the client against those receivables.
How do I get started with A/R Funding?
You simply fill out an application.
Will working with A/R Funding affect my chances of securing traditional bank financing in the future?
You may be surprised to learn that factoring your accounts receivable will, over time, actually enhance your ability to qualify for traditional bank financing. Banks prefer to lend against assets that are more permanent in nature and easy to identify, like equipment and real estate. And since the only collateral A/R Funding requires is your accounts receivable, all of your other assets will be available to use as collateral for bank financing. Plus, banks are more attracted to companies with well-managed accounts receivable and those that make timely payments because of increased cash flow.