Charter Capital is a factoring service that helps a variety of businesses improve their cash flow. It has no termination fee or commitment minimum, so you can use its services as much or as little as you need.
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Charter Capital Rates and Fees
There is no official maximum amount of monthly sales you can factor with Charter Capital, though we were told that $10 million is a comfortable number for it to deal with. This policy gives Charter Capital an edge with large companies, since many other factoring services have a lower limit.
Once Charter Capital has purchased your invoices, it will fund up to an initial 90% of the invoice to improve your cash flow, which is a standard advance for the factoring industry. We weren't able to confirm Charter Capital's factoring fees, but at a minimum, the company takes 1% of the total invoice as a fee. The industry average ranges from 1% to 5%, but some companies do offer lower fees.
Charter Capital varies this fee depending on your specific company, the industry you work in, how much you're factoring monthly and various other factors. This factoring service works in many different industries, including trucking and freight services, staffing, manufacturing, and security.
One downside of Charter Capital is that it is a recourse factoring company, meaning that you must buy back any invoice that the customer doesn't pay. This can disrupt your cash flow and possibly hurt your business if you're not careful. Non-recourse factoring is widely seen as a better option, as you are not held liable for any unpaid invoices, which creates a steady, predictable cash flow.
Charter Capital isn't concerned with your credit score, but it does review the creditworthiness of your customers through various credit reporting services. As long as your customers or clients are trustworthy, you should be able to factor your invoices with Charter Capital.
This factoring service will work with you even if you have previously filed for bankruptcy, so it's a good option if you are unable to obtain a traditional bank loan.
Ease of Application
You can apply for factoring services online with Charter Capital's secure application. After you apply, you can be approved within 24 hours. Once you have set up your account, you receive funding the same day Charter Capital purchases your invoice, as is the industry standard.
To make the application process run smoothly, make sure you prepare the following documents before you apply:
- Your most recent accounts receivable and payable aging reports
- Your articles of incorporation or DBA filing
- A master customer list
- A sample invoice
We tested Charter Capital's customer service by contacting them as a potential customer, and we were somewhat disappointed. Our initial calls went unanswered, and it took several days to receive a response. When we did get a hold of customer service, the representatives were friendly and informative, but the slow response left us wanting more. Still, we had no trouble with finding information once we were able to get in touch with Charter Capital's employees.
Charter Capital doesn't publish its rates, fees or limits on its website, meaning you have to contact customer support to get this information. This lack of transparency can be frustrating, especially when many other factoring services publish their rates and fees. Furthermore, we had trouble contacting customer support on several occasions.
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