Frequently Asked Questions

What is factoring?

Factoring allows your business to release cash against your outstanding customer invoices before they’ve been paid. The difference between factoring and invoice discounting is that we manage your credit control. Factoring is a good funding solution for new, growing and established businesses that are unable to obtain traditional bank financing as well as businesses that experience seasonal demand. With eCapital Commercial Finance, you’ll have a dedicated accounts team that works with you and your customers.

How long does it take to set up factoring with you?

Getting to know your business is a priority. We want to make sure we offer you the best options possible that match the growing needs of your business. We’ll want to talk to you within 24 hours of you contacting us and we’ll need to see a certain amount of paperwork before we make a decision. If we have the paperwork we need from you, we can make a decision in a couple of days of you getting in touch. That’s why our clients like working with us. We don’t hang around.

Who benefits from factoring?

We have many clients across multiple sectors benefiting from our service. Factoring benefits clients who have customers on long payment terms, or who pay late. We spend the time liaising with your customers over their payments, so you don’t have to, freeing up your time to manage your business and focus on growth. We help improve your cash flow. You also have real-time, online access to status reports via our account management system.

Why should I use eCapital Commercial Finance?

We are a forward-thinking, privately held business that has experience working with many industries around the world. We work with firms in manufacturing, wholesale and distribution, B2B services, staffing, engineering, recycling and waste management, transportation, warehousing and more.
We will advance funds against:

  • Accounts receivable – advance rates of up to 90% of eligible invoices including foreign A/R
  • Machinery and equipment – advance rates of up to 85% of net orderly liquidation value
  • Inventory – advance rates of up to 85% of net orderly liquidation value
  • Real estate – advance rates of up to 75% of fair market value

How much will factoring cost me?

Costs are dependent on the services you use and the amount of invoices we handle for you. Contact us today for a free, no-obligation quote.

What are Asset Based Loans?

Our Asset Based Lending solution is a secure loan based on the value of the assets within your business. We’ll lend against accounts receivable, machinery and equipment, inventory and real estate.
Asset Based Lending solutions can help you:

  • Finance growth
  • Take advantage of supplier discounts
  • Increase purchasing power with vendors
  • Fund acquisitions
  • Purchase new equipment and materials
  • Prepare for seasonal demand
  • Finance turnaround situations
  • Make decisions with a consultative team of finance professionals

Your business might be experiencing fast growth or need more operating capital, whatever you need, ABL loans allow you to tap into your assets to generate the cash you need now. Call us to find out how we can help your business grow.

Who benefits from Asset Based Funding?

We have many clients across a diverse range of sectors benefiting from our Asset Based Funding solution. Asset Based Lending gives you the opportunity to leverage funding from your accounts receivable, machinery and equipment, inventory and real estate to gain the working capital you need.

What can I expect from eCapital Commercial Finance

We are committed to helping you grow your business. Our people really do go the extra mile to provide you with a funding solution that is right for your business needs. They work hard to get to know your business and your financial requirements. Our contract terms are flexible and tailored to your needs. We work quickly too, so that you can generate the cash you need, when you need it.

How long does it take to set up an Asset Based Lending facility with you?

The time it takes to set up a facility with eCapital varies and is dependent on the complexity of your business. But generally, we can be up and running in a few days.

Here’s how it works – after our initial consultation with you where we get to grips with your business and its financial needs, we review your financial information and then send you a detailed funding proposal based on your needs.

After you sign your acceptance of the funding proposal, due diligence commences, and you receive the legal documents outlining the agreed terms and conditions. After this you receive the agreed funding.

We need credit quickly; how do Asset Based Loans compare to a credit line or loan from a bank?

Asset Based Loans are usually easier than qualifying for a bank loan or credit line as the facility is backed by your business’s receivables and assets. You just need to show a track record of profitability and strong financial controls.

You’ll find that ABL financing has fewer restrictions than loans and credit lines, which means less worrying about staying in compliance, so you can focus on running and developing the business.

The cost of funds is also typically lower with ABL compared to a traditional loan or line of credit from your bank.

What kind of firms do you offer Asset Based Loans to?

We work with firms with annual revenues of $20 million – $150 million looking for funding lines of between $1 million – $10 million.

We work with firms in manufacturing, wholesale and distribution, B2B services, staffing, engineering, recycling and waste management, transportation and warehousing.

How do I arrange Asset Based Funding through you?

Call us to have a no-obligation confidential chat with our team. They can arrange an appointment, either over the phone or at your premises, with one of our specialists.

After our initial consultation to understand your business and its financial needs, we review your financial information and then send you a detailed funding proposal based on your needs.

After you read our offer and sign your acceptance of the funding proposal, it’s at this point due diligence commences and you receive the legal documents outlining the agreed terms and conditions. After this, you receive the agreed funding.

What does NOLV mean and how is it calculated?

NOLV stands for Net Orderly Liquidation Value and it is the estimated value a business would receive if its assets were liquidated in an organized manner over a period of 6 – 9 months, after sales expenses are taken into account.

You should start with the value of the assets stated in your accounts.

You should then rework the NOLV figure for your main assets as you will need to consider economic realities such as:

  • Property or other fixed assets which have changed in value
  • Old assets or inventory which would have to be sold at a discount
  • Bad debts to the business
  • Machinery and equipment that has depreciated over time due to wear and tear

What does FMV mean and how is it calculated?

FMV stands for Fair Market Value and it is the reasonable selling price of assets on the market.

What are the fees?

Asset Based Lending can be more cost-effective than a loan or a credit line; however, the interest rate is often not the only fee. To avoid surprises, ask the lender for a complete breakdown of the types of services and fees associated with your facility and how often they get revised. Typical fees include maintenance fee, audit fees and up-front closing fees.

What other benefits do I get with ABL loans from eCapital Commercial Finance?

There are many benefits to working with eCapital Commercial Finance. You get:

  • A dedicated client relationship resource
  • Access to a local decision-maker
  • 24/7 online account access to status reports via online account management system
  • Help with financing acquisitions from credit management professionals who will help you evaluate potential opportunities.
  • The funding grows with the business

Who is eCapital Commercial Finance?

eCapital Commercial Finance is a forward-looking, privately held business, with over 25 years of providing personal, responsive and flexible customer-centric solutions.

As well as Asset Based Lending solutions, we specialize in Invoice Factoring across many industry sectors.

Why should I work with eCapital?

We have experience working with business owners in various industries. We work fast to understand your business, so we can agree on options that work for both of us. We take the hassle of chasing payments away from you, so you can concentrate on growing your business. You don’t even need to provide security. Your invoices are our assets.