What is Factoring?

RPG's Factoring programs are cash-flow tools that allow you to accelerate the receipt of your credit sales. RPG pays a significant portion of the face value of your invoice to you immediately upon completion of your sale. Instead of waiting up to ninety days for your customer's payment, you now have the ability to obtain immediate cash flow from RPG, thereby controlling your cash receipts.

How does an RPG Factoring facility work?

When you become an RPG client, you will be able to send us invoices issued by you to the customers you select, together with all pertinent back-up documentation (whatever you usually send to your customer for payment). RPG will factor the invoices, and will pay the agreed percentage, usually by direct wire transfer of funds to your account, on the same day as invoices are received. Your customers will remit their payments to RPG, and when payment is received, RPG will complete the transaction by paying you the balance of each invoice immediately.

What is the amount of the advance that RPG will make against my invoices?

The advance percentage will vary, depending on your needs, the nature of your business, the creditworthiness of your customers, etc. The typical RPG advance is between 75% and 95% of the invoice amount, depending on the program you select.

Global International
Testimonial

As we wind down our partnership I wanted to take a moment and thank you for the exemplary service that you and your team provided us over the past year. As you know, this is the third time in our company’s history that we have partnered with RPG to get us through a difficult cash-flow period and assist us with our growth. Your service has never disappointed.

While I am hopeful that our new banking relationship will be sufficient to carry us through the next phase of our company’s growth, it is comforting to know that RPG is there as an option for us should the need arise in the future.

As always, please do not hesitate to use me/our company as a reference.

Daniel Elmalem
Chief Executive Officer
Global International

Global International is a leading provider of customer management solutions specializing in customer contact and support service outsourcing

Do I have to factor all of my sales, or can I select specific customer accounts?

We will tailor our service to fit your needs! You may select the customers and amounts to be factored by RPG, or you may decide to factor all of your sales through your RPG account. We only require that your customers are deemed to be creditworthy by RPG, and that payment is due in accordance with your usual terms. We will review your customer's payment trends, and, if we are ready to deal with a customer, we will share our experience with you. If RPG declines to accept billings to one of your customers, we will tell you why.

Do I have to factor every sale with a selected customer once I am an RPG client?

No, you are not obligated to take payment on an invoice if you do not need the funds. Simply send your invoice to RPG, and have us process the invoice as usual. Thus, you will have invoices “in the bank” should you require an advance against them. You may choose to delay taking an advance, or you may not take an advance at all. RPG's discount is calculated effective the date of funding. If you delay taking payment, the discount is lower. If you do not need the funds, there are no charges to pay! As payment is received, the funds are transferred to your account immediately.

Are my customers going to be concerned about being asked to remit payment directly to RPG?

In our experience, almost all customers are happy to cooperate with you. The business community is increasingly accepting of the type of capital provided by RPG as mainstream and no negative connotations have been attributed to it. Furthermore, our team of professionals will ensure that your customers enjoy working with us, as much as they do when working directly with you!

How do my customers know to remit their payments to RPG?

We will prepare a very professional letter, to be produced on your letterhead. The letter simply advises your customers that RPG is taking part in the expansion and growth of your business.

Who will call my customers to collect payment?

We realize how important your customer relationships are. If your business has an effective collection program, you may wish to continue to follow up for payment with some or all of your accounts on our behalf. If you wish us to follow up for payment, we will customize a collection program in consultation with you.

What if my customer disputes my invoice, returns the goods, fails to pay, etc.?

In these circumstances, we will ask you to replace or repurchase the invoice. Although we check your customer's credit, and share our opinion with you, we do not guarantee their creditworthiness. However, we will assist you with placing the account on collection and/or reporting the non-payment to various public credit bureaus, which will impact your customer's credit rating. Non-recourse programs may be available. Please contact us for complete details.

What if my business already has a bank line of credit - does this affect my dealings with RPG?

We often meet clients who are restricted from growing their business by an inadequate bank line. We can work with the bank to provide additional funding, and we regularly “top up” bank financing on either seasonal or an ongoing basis by factoring receivables excess to the bank’s margin requirements. If assets other than accounts receivable secure your bank financing, you will normally be free to work with RPG without the bank's involvement.

How much do RPG's Factoring programs cost?

RPG's discount rates tend to vary, depending on the nature of your business and your customer profile. Our discount rates are generally structured as a percentage of the invoice amount, payable for the period between the dates of RPG's advance to you and your customer's payment to RPG. As part of RPG’s straightforward approach, there are never any additional service charges or hidden costs associated with any of our programs. Please contact us to obtain a discount rate applicable to your business.