Capital Credit

Cash that is tied up in unpaid invoices is the problem this factoring company sets out to solve for small and mid-sized businesses in the United States. It says it has been trading for more than 15 years, and offers a way of raising funds against customer invoices rather than through a bank loan.

How the arrangement works

The company is explicit that its receivables program is not a loan. Instead the business sells its receivables to the company in an ongoing transfer, which the company pays for, so no debt is created and there are no repayments. It says it can fund unpaid invoices within 24 hours, makes same-day credit decisions, and normally has an account set up within three to five working days. It describes flexible credit limits, the highest limits available, and real-time account information.

Who it is meant for

Its argument is aimed at firms that cannot easily borrow: new businesses, companies with weak credit, and those without the assets banks want as collateral. It points out that a bank loan for such a business typically comes with a high interest rate, heavy collateral requirements and low limits, whereas a growing business with credit-terms customers often has a ready asset in its unpaid invoices. The company also says that a rise in sales on credit terms is a sign of success but strains cash flow, since the money arrives weeks after the work is done.

Related finance products

Besides invoice factoring, the company offers purchase order financing, which lets a business accept customer orders even when cash is limited, and trade payable financing, under which it pays a supplier directly so the business can take advantage of early payment discounts. It also says it can help fund expenses and growth projects once receivables are being converted into working capital.

Terms and tools

The site lists no monthly minimums and no up-front fees to set up an account. It provides invoicing software and an image upload tool for submitting invoices, supplied through a third-party platform.

Capital Credit, Inc is an invoice finance company serving small businesses across the United States. It buys unpaid invoices so that firms receive cash quickly instead of waiting on slow customers. The company describes its arrangement as a sale of receivables rather than a loan.

Products and services

• Accounts receivable factoring: turns unpaid invoices into working cash.
• Purchase order financing: lets a business fulfil customer orders when its own cash is limited.
• Trade payable financing: pays suppliers directly so early-payment discounts can be taken.
• Online account tools: invoicing software and real-time account information.

Clients

Small to medium-sized businesses, including newer firms and those with weaker credit that struggle to borrow from banks.

Key facts

• Coverage: nationwide
• Experience: over fifteen years in business
• Set-up time: accounts can be opened in three to five working days