Cortesi Construction

Cortesi Construction
33644 8th St Union City CA 94587
510-952-9999
cortesiconstruction@comcast.net

Cortesi Construction is a Family Owned and Operated Company with over 20 years of Experience specializing in any Home Improvement or Construction service such as; Kitchen Remodeling, Bathroom Remodeling, New Construction, Roofing, Countertops, Plumbing, Flooring, Tile, and more.

Established as a Company since 1991, Cortesi Construction is #1 in customer satisfaction, offering experienced, reliable, and fast service to ensure we don’t waste your time or money. All Work comes with a 100% customer satisfaction guarantee. While Projects are ongoing there is always on site supervisor making sure the job gets done right and just the way you like it.

We offer free estimates and references upon request. 

We Are The Handyman Experts, Call The Experts, serving the areas of Union City, San Francisco, & Fremont CA. CA General Contractors License # 818945.

Cortesi Construction

Cortesi Construction
33644 8th St Union City CA 94587
510-952-9999
cortesiconstruction@comcast.net

Cortesi Construction is a Family Owned and Operated Company with over 20 years of Experience specializing in any Home Improvement or Construction service such as; Kitchen Remodeling, Bathroom Remodeling, New Construction, Roofing, Countertops, Plumbing, Flooring, Tile, and more.

Established as a Company since 1991, Cortesi Construction is #1 in customer satisfaction, offering experienced, reliable, and fast service to ensure we don’t waste your time or money. All Work comes with a 100% customer satisfaction guarantee. While Projects are ongoing there is always on site supervisor making sure the job gets done right and just the way you like it.

We offer free estimates and references upon request. 
We Are The Handyman Experts, Call The Experts, serving the areas of Union City, San Francisco, & Fremont CA. CA General Contractors License # 818945.

Factoring Your Invoices Could be the Answer to Cashflow

Why should you factor your invoices? Factoring your invoices can give you access to money immediately instead of having to wait months for your customers to pay.

You can get accounts receivable factoring quotes from multiple companies, and then you can make your decision about who will give you the best deal.

Not every factoring company will give financing for every industry. For example, some companies will only do factoring for businesses in the medical field. On the flip side, some specialize in Trucking Factoring.

Here are some reasons why you would want to factor your invoices:

• Access to cash now
• You can use the money to pay your payroll
• You can use the money to increase inventory
• Use the money to expand

Companies that will be able to qualify for invoice factoring are ones that do business to business. If your clients are individuals, your company is not going to qualify for invoice factoring. When you are looking to get your invoices factored, the factoring company is going to look at the credit of your client. That is another reason why factoring is a great way to get business financing.

Factoring

Factoring your invoices

Managing money flow can be a challenge for many businesses. But creative funding choices like invoice factoring and buy order (PO) financing can make the job much easier. These financial solutions offer convenient, cost-effective and immediate access to working capital. Invoice factoring and purchase purchase funding are suitable for companies in just about any business. They can supply monetary support to expand, manage business surges or even meet day-to-day operating expenses. And they're ideal if your organization is newer and can't obtain a loan. The Ins and Outs of Invoice Factoring Invoice factoring is simple to set up and terminate. To qualify, you ought to have no existing primary liens or claims on your accounts receivable. And you have to have creditworthy clients who pay their invoices promptly and in full. When factoring client invoices, you are able to receive quick money advances often within 24 hours. Your cash advance is based on the overall value of the invoices you supply as collateral. Typically, you can get 80 percent with the invoice worth upfront and the remaining worth after your client pays the invoice minus a three to five percent factoring fee. Your customers pay the factoring organization directly. And also the factoring company takes responsibility including any loss for the collection of their debts. It's important to note that invoice factoring isn't a loan, so there are no repayments to make. You're simply utilizing the great credit rating of the clients to release your personal assets to be put back in your own business. Historically speaking, factoring is a well-established form of business funding that produces cash payments at the time of shipping, delivery and invoicing. Its origin has been traced to the days with the Roman Empire or even earlier, but the U.S. factoring business dates back only about 200 years towards the early nineteenth century. Factoring companies, known as factors, evolved from U.S. selling agents for European textile mills. Currently, about 70 % of the volume of traditional factors is still in textiles, apparel and related industries that extremely worth credit rating guarantees, according to the Commercial Finance Association. A good financial move can supply the operating capital your company needs to handle new projects, fill large orders and pay creditors on time as well as early. In essence, factoring can keep your cash flow running smoothly while your business grows. This can enable you to stop worrying about finances, and concentrate on productivity and how to profitably expand your company. Factoring also can assist you avoid wasting time tracking down accounts receivable or handling bad debts. Here are some other essential factors (no pun intended) about invoice factoring: – There's no application or set up fee. – You choose which accounts to finance. – Invoices eligible up to 30 days from the date of invoice. – There's no a minimum funding requirement or requirement to factor all invoices. – The funds wired directly into your bank account. – Clients send their checks directly to our lockbox. Cashing in on Buy Order Funding PO financing can provide quick money flow reserves for manufacturers, importers, exporters and distributors. This kind of short-term funding is utilized to finance the purchase or manufacture of particular products that have been presold by the client to its credit worthy end customer. Funding involves issuing letters of credit or providing funds that allow companies to secure the inventory they require to fulfill client orders. With PO financing, operating capital funding is protected by a security interest in existing purchase orders and also the proceeds with the purchase orders. Normally, the security interest is perfected by the lender taking possession of the inventory or raw materials. PO financing can pay for the cost of the goods straight for your supplier, freeing up cash for other critical company expenses. This can assist your company ensure timely deliveries to clients, grow without increased bank debt or selling equity, and increase market share. To qualify for PO Financing, you have to provide monetary info about your organization, information about your purchaser and supplier, and buyer and supplier invoices. PO funding is accessible for completed and non-finished goods, although finished goods are generally easier to finance. Finished goods involve transactions where the products go straight from your supplier to your buyer. You never touch them or take direct possession. Non-Finished Goods are when you, the seller, take possession of the products either in a raw state (such as yarn to make blue jeans) or a semi-finished state (partially sewn blue jeans).
In either case, you must take possession of the product. Purchase purchase funding can assist solve a variety of cash flow dilemmas. Here's a prime example: Your suppliers want you to spend cash on deliver (C.O.D.) and your buyers want to pay you net 30 to 60 days. You've no money flow during manufacturing, whilst the goods are in transit, and until your invoices are paid. PO funding may be right for your organization if..
. – You need extra working capital. – You lack expertise to handle the funding. – You need a fast response to an immediate sales require. – You don't wish to incur extra credit rating risk, be it foreign or domestic. – You would like your buyers and sellers to not know each other. – You would like the opportunity to create extra profit. Purchase orders can be used for U.S. and foreign buyers and suppliers. Consider this scenario involving a U.S. supplier and U.S. buyer: You're an apparel manufacturer. You've been in business for six years and have a great profit and loss statement and balance sheet. You just received a big order and are maxed out on credit rating from your suppliers. Your sales price to your buyer is $100,000 and your total price to produce the products is $75,000. Your gross margin is 25 percent. The funding organization will buy the goods for you out of your supplier, give you 45 days to create the goods, charge you a 5-percent purchase purchase fee ($5000, 5 % of $100,000) and factor your receivables.

Invoice Factoring for Cash Needy Companies

Trucking Factoring

Trucking , Freight and Factoring in Canada have become somewhat synonymous terms. Let's look at some of the reasons for that.

Canadian Trucking and Transport firms have historically been significantly challenged in financing their company through traditional working capital methods – i.e. bank loans, bank lines of credit, working capital term loans, etc. When these are not available (for a variety of reasons!) Your trucking and transport firm, no matter what size, should consider receivable financing, also known as freight factoring .

In the past we have spoken of the 'working capital gap '. Nowhere is this 'gap 'more evident in the trucking industry. Will it require rocket science to understand the gap? Not really, it's as simple as this – your drivers, fuel suppliers and other want to be paid weekly, or within 30 days, whatever their terms are with your firm. You have receivable, but these tend to be collected in 60 days, sometimes more, sometimes less, mostly more!
That's the working capital gap.

As a trucker or truck firm owner you are looking for a better way to finance your business. Truck factoring / freight factoring in essence give you an unlimited amount of credit line based on the receivables as collateral. As your business grows, so does your factoring facility.

This type of accounts receivable or invoice discounting facility allows you to pay suppliers and employees, and further allows you to focus on growing your business. What you are doing in essence is capitalizing your business with the proper amount of working capital. That's common business sense, and allows you not to tap into either personal financial resources or enter into long term loans, assuming you qualify for those loans – many don't in the somewhat challenging current financial and banking environment.

So it all sounds kind of easy, do it not. There are of course issues you have to both understand and address. One if of course fees, which range in Canada from 1-3% per month. As a business owner of financial manager of a truck or transport firm there are numerous ways in which you can offset part, or in some cases all of your financing charges. One of these very obvious ways is to use the new cash and working capital that you generate from your factoring and accounts receivable discounting facility to pay suppliers on time and take their discounts.

When we talk to Canadian business firms, including truck or transport firms more and more of their time is focused on looking for cash flow solutions and not on running and growing their business. With a proper accounts receivable and factoring facility you can focus on growing your firm's sales and profits.

In Canada factor solutions for truck and transport firms, how they work on a day to day basis, and their costs differ greatly, and we mean greatly. We recommend you talk to a trusted and experienced advisor in this area to maximize the solution that's best for your firm in terms of rate, structure, and day to day paperwork.

Invoice Factoring – Accounts Receivable

Before I ran my staffing agency, Inkwell Editorial, in New York, I didn't know anything about factoring. But, I'd gotten myself into a real financial pickle, and my business mentor recommended that I use one.

The Number One Problem of Small Business: Cash Flow

As with most small business, I had a cash flow problem. I ran into financial trouble when my clients weren't paying on time, but I still had to meet payroll. Clients had 30 days to pay, but payroll was due every week.

Remember, we were a staffing agency – and almost all of them pay weekly. When you get a few clients who start to pay around the 75th or 90th day, you can run into cash flow problems relatively quickly, especially if you are a small business.

I had figured into the budget that clients would pay at the 60th day. It's when they started to pay later than that I really felt the crunch. And, as ole law Murphy would have it, this is what happened to me – all of a sudden, three of my biggest clients started to pay late.

Between these three clients there were approximately five employees who had to be paid weekly. And, some of them were logging OT, which really made me feel the crunch.

Looking at what was owed me, as opposed to what I had in the bank made me sick to my stomach. That was when my business mentor recommended I find a factor.

What is a Factor? (NOTE: The proper term is Factor, not “Factorer”)

Also known as Accounts Receivable funding and or asset-based lending, according to FountainheadFunding.com factoring is “. . .
Huh, what exactly does that mean? In essence, it means that you borrow against the funds that are owed you.

How Factoring Works

For simplicity sake, say Company A owes you $100. They've been a steady client for the last three years who have run into some cash-flow problems of their own.

A factor might pay you $75 on that outstanding invoice of $100. You can get more based on when the client pays. So, if the client pays the invoice within 30 days, the factor will pay you an additional $10 more of the original $100 owed; if the client pays within 60 days, the factor will forward you an additional $5 of the original $100 owed, etc.

In essence, the longer the client takes to pay the invoice, the less money you receive for that invoice from the factor.

medical factoring

AR Factoring

Converting an invoice to cash is a top priority for Canadian business owners and financials managers. Factoring continues to slowly increase it's presence in the Canadian market place, and some of the largest corporations in Canada actually successfully use this type of financing strategy. However for the purposes of our information shared here we will focus on the whats, whys and how to be of factoring for small and medium sized companies in Canada.

Once a business owner both understand and starts to ' buy into ' this type of financing the only challenge at that point is ensuring that they enter into the right type of facility .

The Canadian factoring market is significantly different from the U.S. and European markets where factoring originated. It is therefore important for Canadian business owner who consider this type of receivable financing to know their options and to have a solid sense of how the financing works.

Canadian factoring companies fill the gap when a firm cannot obtain satisfactory receivable financing from their Canadian chartered bank. Many clients tell us they do have some for of bank financing in place, but it essentially does not meet their needs re growth and facility size. In many cases clients have had a challenging 2008-2009 and have no financing facilities in place whatsoever. Then there are of course starting up firms who virtually have no ability to qualify for standard Canadian operating facilities that are enjoyed by more larger and established firms.

Factoring works for your firm when you have decent receivables but there are issues on your balance sheet and income statement that prohibit you from obtaining the amount of financing you need on an ongoing basis . This working challenge is further exacerbated when you have large new contracts or volatile growth spurts based on the uniqueness of your industry.

There are two types of factoring in Canada, 'notification factoring ', and non- notification factoring. Both work well if you understand how they are structured and priced, however we favor non notification factoring in our recommendations since we feel it more closely suites the Canadian way of doing business.

In notification type factoring the process is very simple and mechanical:

- Your firm invoices your customer
- You generate an invoice
- You receive a large, almost same day cash advance against that invoice (typically 90%)
- Your factor firm verifies the invoice with the customer prior to disbursing funds
- The factor firm more often than not collects the invoice, an remits to your firm the remaining balance due yourself, less their financing fee

Non notification factoring is dramatically different – with that type of facility more due diligence is spent on your firm and its way of doing business, invoicing, creating proper financial records, etc. Your company bills and collects all its invoices, and you receive funds immediately after you ship and provide proof of delivery.

Factoring pricing in Canada has dramatic price swings. Factoring rates range from 9% per annum to 2-3% per month. Factors that determine your price are the over all facility size, your usage of the facility, the overall quality of your customer based, and ,unbeknownst to your firm, how the factor firm itself is funded, usually either privately or institutionally .

In summary factoring works in Canada. Choosing the right facility is usually a larger leap of faith than buying into the concept of this type of financing. Speak to a trusted, credible and experienced advisor in this area to ensure you understand the benefits of this valuable and popular method of Canadian business financing.

Invoice Factoring Information

New and small businesses may not realize that there is a valuable resource available to get needed funds for your company. Your business receivables account is more valuable than you think. It will provide money owed to you now, when you need it. 

So what is business receivables?

Business receivables is the term used to describe money owed to a business from one or numerous accounts. These unpaid amounts are considered company assets as it is assumed payment is in progress. Therefore, these business receivables are recorded as such on the company's balance sheets. Business receivables may include money currently due, money that is past due, in addition to money that is not yet due. Account receivables may also include long money that will not be due for months, or even years. This money is recorded as a long-term asset. 

What to do if you need your business receivables now?

Needless to say, business receivables are best received. Without this anticipated money on hand, a business may not be able to meet payroll and pay payroll taxes, or make much needed purchases. Having money tied up when it is needed elsewhere is a huge inconvenience for a new or small company. 

What is factoring account receivables?

There are companies that provide a service called accounts receivable factoring that will provide much needed cash in exchange for your valuable asset (your business receivables accounts). This cash may be in the form of an untraditional secured loan secured by the account receivable. A business may also sell (factor) their account receivables. If you have ever joined a gym where membership is to be paid monthly, but you are billed by a finance company, then your account receivable has very likely been sold (factored) upon your signing the membership contract. Factoring receivables simply means selling your invoices or account receivables “factor” at a small discount. This money can be converted into a type of “credit line” for immediate cash. 

What if my business receivables are never paid?

Sometimes, business receivables go unpaid by the customer. The company writes off these unpaid invoices as a loss. However, the loss of these funds is also very bad for business. To prevent devastating loss to the corporation, the business will want to accounts receivables insurance. This insurance is available for domestic and international business receivable accounts. 

Where do I start?

If you own a small or new business and need access to cash, consider selling or taking a loan against your business receivables account, but do your research first. There are many companies offering these services. Make sure you are working with a reputable company.

Factoring – The Best Strategy

So what exactly is accounts receivable factoring? Well very simply it is the process of obtaining funds by selling your company's accounts receivable. To go into a little more detail a company takes the outstanding invoices it is owed and sells them to a third party company called a factor. By doing this the company selling the invoices receives an up front payment on the invoices instead of waiting thirty or more days to be paid. When the invoice does come due the payment is sent to the factor instead of your company. Sounds great right? Well it's not all roses. If you're considering going this route you'll need to do your homework. If you don't you might pay a pretty hefty price.

Now depending on whom you talk to the accounts receivable factoring business is either the greatest thing since sliced bread or in the neighborhood of borrowing from a loan shark. Each experience is different and some companies are on the up and up while others you won't want to touch with a ten foot pole.

So you can better understand the experience we'll walk you through what happens. Now assuming you've got a factor you're intending to work with we'll start from the point of the sale. You've just finished a large project for a customer. You issue your bill to them. The first thing the factor will want to see is a signature showing that they were satisfied with the work. But let's say you sold them a product that was delivered at the dock. A receiving clerk's signature is not going to cut it. You're going to need the signature of the person that authorized the purchase to begin with. They'll need to sign the invoice and some other form of document verifying the purchase was legit and they plan on paying for it.

Next you'll need to fax those documents to the factoring company. But you can't do this from your office because you might have forged those signatures. No they need to be faxed from the customer's office. And once the factoring company does receive the documents they may still want to call and verify the purchase. Now if the purchase was for a significant amount of money all this hassle may be worth the trouble but what if the purchase was for a few hundred bucks. Not worth the trouble you say? Well we have a problem with that too.

You see when you first sign up with a factoring company they want to know what companies you do business with. And which of those you want to have the invoices factored. This is because those companies that you decide are worth factoring have to be notified that this is going to be the case. And the factor will want to run a credit check on the company. Your customers will also be notified that they must now send their payments to the factoring company instead of you. This task also will be left up to you. The quandary is this if you don't factor an invoice the company still must send the payment for it to the factoring company not to you. This will actually cause that particular payment to take longer than necessary to reach you because it will go to the factor first and they have to release it to you.

Once your invoice has been submitted to the factor from your customer's location you need to check and make sure it was actually received and there are no problems with it. After the factor receives the invoice it should only take about twenty-four hours to be approved. Most factors have a cut off time each day to receive an invoice if you want to receive your money the next day.

After the factoring company has approved the invoice you will receive a wire transfer to your bank. From there the money is yours to do as you will. Many factoring businesses would like you to believe that using accounts receivable factoring is a great way to get the money you need to grow your business. The truth is that it is not suitable for many types of businesses. Your billing methods need to be very straight forward to help make factoring work. And it helps if you issue fewer invoices but for large amounts of money. Otherwise the leg work involved can take you away from what truly matters. And that is focusing on your business.

Factoring

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