- Why should I choose RTS International?
- In what countries do you provide services?
- What are your minimum requirements for financing?
- What industries does RTS International serve?
- How does the accounts receivable financing process start?
- How does accounts receivable financing work?
- Is accounts receivable financing similar to a bank loan?
- What is the difference between recourse and non-recourse accounts receivable financing?
- What about fees? Contract terms?
- Is credit insurance needed on debtors?
- How long does it take to receive the first funding?
- How do clients get information on their accounts?
RTS International is a leader in accounts receivable financing, providing cash for your invoices within 24 hours. Accounts receivable financing, which is also called "factoring," solves short-term cash flow issues for companies in a variety of industries, including manufacturing, textiles, transportation, agriculture and seafood. Here are some ways RTS International can help your company:
- You get paid for your invoices within a day instead of in weeks or months.
- We can design a financial program that provides necessary capital when you need it.
- Our cash flow solutions are more flexible than traditional lending.
- Our financing does not show up on your balance sheet as debt.
- We look at the quality of your customers' credit.
- We provide financing based on sales, not your company's net worth.
- Our application and set-up process is fast and easy.
RTS International primarily works with businesses located outside of the United States that export products to the U.S. and Canada. However, we do work with some clients that export to other countries. RTS International works with businesses located in more than 40 countries around the world.
RTS International requires an average monthly exporting volume of $200,000 or more in U.S. dollars.
RTS International works with companies in a wide variety of industries, including manufacturing, textiles, transportation, agriculture and seafood.
Customers need to complete a simple application, provide a current aging report and a few other basic documents.
Accounts receivable financing, also called “factoring,” allows RTS International to purchase your company’s invoices and then provide an advance on the totals. We advance between 80% and 90% of a total invoice value, then we collect the full amount from your customer under normal payment terms. Once the invoice is paid in full, we fund the remaining percentage to your company, minus a fee for assuming the collections risk.
No. Accounts receivable financing is not a bank loan and you are not assuming any debt.
The emphasis is on your customers’ invoices, not on your balance sheet. Normally, funds are available much more quickly than with bank loans, usually within 24 hours or less. Accounts receivable financing, or factoring, provides a steady flow of funds, whereas bank loans are usually one lump sum. We assist with the credit and collection functions, which improve your company’s balance sheet. While bank loans add to your debt, accounts receivable financing converts one asset (receivables) into another asset (cash). In many cases, bank loans can be difficult to attain and are limited by your balance sheet.
Recourse means the client ultimately takes the responsibility for the payment of the invoice.
Non-recourse accounts receivable financing allows companies to sell their invoices to RTS International, and we assume all of the credit risks for the collection of the invoice.
There are no hidden fees in our agreement. Besides the factoring fee, the only other fee is an ancillary fee. Factoring fees are determined by monthly volume, creditworthiness of the buyers and other conditions. Most contracts have an annual renewal fee.
Typically insurance is not necessary, but may be required in specific circumstances.
The initial funding process takes between one and three business days after RTS International receives the signed contract. After the initial funding, your company can receive funds within 24 hours after receipt of invoices.
RTS International clients have access to their accounts through our secure online portal. Customers can log in and view their entire account history: their reserves, current funding and other information. Clients will also have a customer service representative assigned to their accounts. Our representatives are available during normal business hours (8 a.m. to 5 p.m., U.S. Central Standard Time) to assist clients with all of their business needs.