Frequently Asked Questions
1) what fees do you charge?
Capital Business Funding bases our fees on several factors:
- Average invoice size
- Monthly billing volume
- Average days to payment
Fees usually range from 1.5-3.0% of the gross value of the invoice.
Example: If an invoice is paid in 30 days and has a gross value of $1000, a fee of 2% equals $20.
2) What is an Advance Rate?
An Advance Rate is the amount of money you receive when your invoice is purchased. The remaining balance is returned to you when your customer pays the invoice. Advance rates typically range from 80-90% of the gross value of the invoice.
Example: If an invoice has a gross value of $1000, an advance rate of 85% equals $850. The balance of $150 less the funding fee is remitted to you when your customer pays the invoice.
3) How long does your application process take?
Our corporate structure allows for responses within 24 hours of receiving the complete financial package.
4) Do I have to fund ALL of my receivables?
No. Our clients are afforded the ability to choose which invoices will enable them to fund their short-term working capital needs.
5) Do you require long-term contracts?
Unlike our competitors, we do not require long-term contracts. Our ultimate goal is to help clients grow to the point where they no longer need our services.