California Construction Financing

Frequently Asked Questions

Resource Business Partners, Inc. stands tall among all other California invoice factoring companies. We provide Accounts Receivable Financing, or "Factoring" to California construction companies facing project financing challenges.

Take a minute to review some of our frequently asked questions.
If you have any questions that aren't covered here, or perhaps quesitons that require more clarification, contact us today.

If you're ready to act, download an application right now. Fill it out today and fax it to 408-997-6703

Frequently

Q: Why would a company factor their receivables?

A: Companies that find cash flow to be a recurring problem often can't afford to have their invoice payments tied up for 30, 60, or even 90 days. They need cash now to meet the immediate financial demands of their business.

Q: Is factoring a type of loan?

A: No. Factoring is defined as the purchase of a company's receivables at a discount. By contrast, a loan would use those receivables as collateral.

Q: Wouldn't a bank loan make more sense?

A: In some cases. The lending environment for California Construction companies is extremely tight at the moment. There doesn't seem to be a clear end to the restricted lending policies being offered by traditional lending institutions. These restrictive lending requirements by banks often prohibit them from lending to your company. Resource Business Partners, Inc. is not in the lending business. Rather our decision to purchase invoices is influence by the quality of your customer base.

Asked

Q: If a factor buys my invoices, who actually bills my customer?

A: You prepare and mail your customer's invoice as usual. Then you fax a copy to Resource Business Partners and receive an immediate cash advance. Resource Business Partners follows up to ensure receipt of payment.

Q: How quickly do I get paid?

A: Resource Business Partners pays as soon as the invoice is confirmed, usually within 24 hours of confirmation.

Here's an example:

Client's invoice $1,000
Cash advanced to client from RBP $800
4% Fee retained by RBP $40
Reserve fund held for client $200

Cash advanced to client from RBP $800
Customers payment rcv'd by RBP $1,000
Reserve refunded to client less fee $160

Questions
Q: How much does factoring cost?

A: 4% for the first month, then down to 3% for each additional month (prorated at .10% per day after the first month)

Q: Do I need to factor all of my invoices?

A: No. You have the power and control to decide which invoices you want to process in order to manage your own cash flow needs.

Q: How much do you advance?

A: We advance 80% of the factored invoice. Once your customer pays the full invoice amount, we return the remaining 20% minus our fee.

Q: Does my company have to have good credit to qualify? Do I personally have to have good credit?

A: No. Resource Business Partners will factor your invoices provided that your customer is credit worthy and has shown a good payment history.