Deferring your Account Receivables?
There's no need to wait for a settlement to get paid.
This should not affect your cash flow.
Finance Bound's Assessment Financing program solves the cash flow puzzle for both you and your clients by allowing you to get paid immediately upon invoicing your client.
Essentially, we factor assessment provider invoices so that law firms can defer payments until a settlement is obtained. This facility provides our clients with immediate cash flow and their law firm clients with a break on having to incur expenditures for the case in question.
It's a win-win solution for everybody.
The missing piece to cash flow shortages
THE BENEFITS OF ASSESSMENT FINANCING
Immediate Cash Flow
Get paid right away, versus waiting the 1 to 2-year time frame for a case to settle. Businesses depend on cash flow and your business is not any different.
Secure Invoices
Since your invoice is based upon a legal case that will ultimately realize a settlement, your invoices are secure and easily factored.
No additional work for you
We handle everything, from the paperwork and on-going administration to the eventual collection of payment.
Client Satisfaction
Your client will be pleased if you bring Finance Bound into the equation and provide them with payment deferral (by way of factoring) as a payment option.
Factoring is a practice that businesses have been using for many years. In simple terms, it is the process of converting unpaid invoices into cash flow.
Businesses typically turn to factoring when the payment cycle on certain invoices is longer than they are willing to wait. For instance, if the terms on an invoice is net 90 – 180 days, that means that a service provider is having to wait 3-6 months to get paid. For some businesses, derring cash flow for that long can result in a negative impact. In these cases, factoring is a viable solution. The unpaid invoices in question are monetized immediately and the purchaser of these invoices (the ‘Factor’) then assumes the wait time for the invoices in question.
There are no up-front costs to obtain cash flow via factoring.
Factors derive income from the process by advancing discounts against the face value of an invoice.
Here’s how it works:
- The invoice in question is analyzed to ensure that the payor (billed party) will successfully settle the invoice at a future date.
- Upon confirmation that the invoice is sound, the face value discount is offered. For instance, $800 may be offered as immediate cash flow against a $1,000 invoice.
- You can accept or decline the offer. If you choose to accept, the discounted amount is immediately advanced to you and the factor becomes the new payee of the invoice.
No.
The advance of funds is contingent upon the assurance that the invoice will be paid in the future. As long as the payor (billed party) is deemed trustworthy, an invoice can easily be factored.
With respect to the personal injury litigation, the payor (billed party) is a law firm, and further, the invoice in question relates to a case that the law firm expects will result in a settlement. For these reasons, these invoices are secure and we advance funds for assessment providers quite often.
The real issue here is time. Most assessment providers prefer not to wait 1-2 years to realize the cash flow on their services rendered. And practically speaking, that is a long time to wait, which is why factoring makes sense.