Northwest Capital FAQs
Q: Who is Northwest Capital?
A: We are a commercial finance company that specializes in the purchase of invoices for working capital.
Q: Why would a company sell their receivables?
A: Companies that find cash flow as a recurring problem often cannot afford to have working capital tied up in receivables 30-60 days. They need the working capital to meet the immediate financial demands of their business.
Q: Is factoring a type of loan?
A: No. Account receivable factoring is defined as the purchase of a company’s receivables, as opposed to a loan using the receivables as collateral.
Q: Wouldn’t a bank loan make more sense?
A: Banks often have restrictive lending requirements relating to cash flow, profitability, equity, and years in business, which prohibit them from making loans. Northwest Capital is not in the lending business. The decision to purchase invoices is influenced by the quality of your customer base and their performance as opposed to years in business or financial strength.
Q: If a factor buys my invoices, who actually bills my customer?
A: You prepare your customer’s invoice and forward it to Northwest Capital for an immediate advance. Northwest Capital mails the invoice to your customer and then follows up on it to ensure receipt of payment.
Q: How quickly do I get paid?
A: As a reliable and efficient commercial financing company, Northwest Capital advances within 24 hours of receipt of the invoice and may require supporting documentation.
Q: How are the fees for Northwest Capital services determined?
A: Fees vary from company to company and from client to client. They are determined by a combination of your customer base creditworthiness, average payment cycle, invoice sizes and factoring volume.
Q: Do I need to sell all of my invoices?
A: No. You decide which invoices you need to sell to manage your cash flow needs.
Q: How much will Northwest Capital immediately advance me?
A: Northwest Capital will immediately advance you as much as 80% of the value of your receivables so you have working capital to secure more business.
Q: How can factoring improve my credit rating?
A: When you pay your suppliers and creditors promptly, your credit rating increases and your reputation soars.