Northwest Business Finance, LLC "Providing Financing to Businesses through the purchase of Accounts Receivable" Get cash for your invoices daily! Solve your cash flow problems!

 No monthly or annual minimums   -   No long term commitments

Northwest Business Finance  provides a service similar in purpose to a bank line of credit called factoring .  We purchase our clients' accounts receivable at a discount  which allows them to meet their cash flow needs and take advantage of growth  opportunities and eliminate cash flow problems.  We have accommodated both small and large clients with fundings ranging from $5,000 to over 1,200,000.

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 Company Profile

Northwest has over 32 years of combined experience in the commercial financing field. Northwest provides the lowest fees and ease of service in the factoring industry.  We create an atmosphere in which customers can approach us with their needs and be heard. At Northwest we pride ourselves in our relationships with our customers and that is why we have  NO MINIMUMS OR LONG TERM CONTRACTS.

 What is just as important as your Margin of Profit?
 How Quickly your Money Turns!

Let me give an example. You are ready to start your business and you have $7,000 in cash left. You spend all the money to purchase materials and pay labor costs and produce your product (a widget). You want to make a 30% profit based on sales price. You add $3,000  mark up to your $7,000 you have spent on production and price your product at $10,000. You can’t produce another widget until you have sold and been paid for the widget you have your $7,000 tied up in.

You sold your widget to a company that you had to give 30-day terms to in order to make the sale. In 30 days you get paid and now you can begin to produce another widget. If it takes you 15 days to produce another widget, and another 30 days to get paid before you start producing another, you are TURNING your money every 45 days or 9 times a year.

If you make $3,000 dollars per widget you can only make 9 a year. At $3,000 per widget, making and selling 9 in a year gives you $27,000 dollars that you will make in a year.

If you could get paid immediately as soon as you have your widget made, you could make a widget every 15 days or roughly 2 a month or 24 a year. Now you are TURNING your money 24 times. At $3,000 per widget and making and selling 24 widgets in a year, you would make $72,000 in a year. Using the same $7,000 in working capital, you can make $27,000 or $72,000 depending on how fast you can turn your capital.

360 days / Production Time + Days to Be Paid = Annual Turns X Mark Up = Profits

This is what many people miss when they come to Northwest looking for working capital. They don’t understand how much it is costing them for their customer to take 45 or 60 days to pay them. To miss an opportunity to make an additional sale and turn of your capital is costly.
Having Northwest give you cash today to put the money back to work is much better than waiting to be paid and "saving" the financing fees.

Q:  Isn't factoring  just getting a loan and creating more debt?

A:  No!  You are selling an asset at a discount.  With Northwest you simply choose which invoices to sell.  When the invoice pays, you're refunded the reserve amount less the fees, there is no debt to pay off.

Q:   Is selling my accounts receivable really a good idea?

A:   If you have reoccurring cash flow problems, or if you want to turn your money quicker to make more money, factoring can solve your cash flow problems and help you to grow as fast as you can make sales.

Q:  What type of companies use factoring?

A:  Manufacturing companies, service companies, trucking companies, medical clinics, etc.  If you sell on credit to other companies and have to wait to be paid in most cases it would be beneficial to factor if your short of capital or cash flow.

Q:  How do I know what my outstanding balances and paid accounts are?

A:   Northwest provides weekly aging updates detailing all activities.  If you need information more up to date, we can give you reports at any time.

Q:  How quickly can I get funds?

A:   If we receive your request and supporting documents by noon,  we deposit funds into your account the same day we receive the request.

Q:  How are fees for services determined?

A:   Fees are determined by a number of factors: sales volume, credit strength of customers, payment cycles, invoice size, and industry conditions are the most common.

Q:  Are we required to sell all of our receivables to you?

A:   No!  Northwest has no monthly or annual minimums.  We sell only what you need to cover your growth and cash flow needs.

Q:  If my company is small can I still qualify for factoring?

A:   Northwest has no minimums so size is really not an issue.

Q:  My company is in a Chapter 11, does this disqualify us for factoring?

A:   No!  To be able to put your remaining capital back to work as quickly as possible can be one of the keys that leads to recovery.  Please note you will have to get court approval to factor in most states.

Q:  Won't factoring take up too much of my profit margin?

A:   The key is whether you can increase your sales or decrease or maintain your costs. Overhead does not increase as sales go up and real money is made after break even when all your profit margin goes to the bottom line instead of covering overhead. Also many times you can take advantage of discounts with the cash you receive from factoring.  See  "Factoring Won't Cost Too Much" for more details.

Q:  Can I factor if my accounts are pledged as collateral on a loan?

A:  As a factor we must have the invoices we purchase unencumbered.  However, this is a normal occurrence and most times liens can be released or a subordination agreement can be arranged with the other lenders.

Q:  What if we are a new business and have no credit history?

A:  We look to your customers for payment so your credit history is not our major concern.

Q:  Some of my customers take up to 60 days to pay—won't the fees be too much to make it worthwhile to factor?

A:  It is important to look at fees, but it is more important to look at the turns on your money.