Flexibility Beyond Other Payroll Funding Companies
At Flexible there are no long-term (1-2 year) contracts with our payroll funding solutions. If you find better terms, payroll funding service, costs, or are unhappy for any reason, you can terminate our financing contract anytime with no penalties whatsoever.
Flexible Funding has eliminated all of the prepayment early termination penalties factoring companies impose, including the ones that the accounts receivable financing industry often disguise as liquidated damages, monthly minimum fees (owed to the end of the contract), forgone funding company profits, etc.
Flexible Funding never boxes you in with automatic financing contract renewal clauses common to the accounts receivable funding industry.
You are not required to borrow on all of your account receivables/invoices and our fee structures reward gradual pay down.
Fair and Flexible Legal Differences
Our rate is extremely competitive AND there are important legal differences; our agreement is fair and reasonable. Other accounts receivable financing companies often have very one-sided contracts in favor of the funding company/factoring company. Examples:
- In many other payroll funding company agreements, the funding company can terminate the agreement for numerous reasons, but you can’t (even if you’re unhappy). With Flexible you can terminate anytime for any reason.
- Factoring companies may provide they can contact and collect from your customers at anytime in any manner, without giving you a fair warning shot that they are going to do so. They may get power of attorney to say in effect that they are you. And they may be able to make deals with your customers to pay less than the face amount of the accounts receivable invoices… and then you owe the difference. Flexible Funding gives fair warnings and only you make deals with your customers.
- Many factoring companies purport a small reserve fund requirement (larger advance) and then in the fine print provide that they may “at their election” substantially increase funding reserves at any time. More predictable language/guidelines are usually preferred by staffing agency management.
- Many lenders/factoring companies make you pay all of their attorney’s fees, court costs and expenses if you should get into a disagreement. And they may not limit it to reasonable legal fees. Our payroll and accounts receivable financing agreement doesn’t require you to pay for us. See No Fine Print Extra Costs.
- Other accounts receivable financing company contracts often allow a blanket security interest filing on your business which can tie up more than accounts receivables –which can cause problems when you want to lease computers and equipment, or want to supplement with funds from other sources (SBA loan, investor money, etc.). Flexible Funding is only secured on accounts.
No Fine Print Extra Cost & The BIG RATE DIFFERENCE