Frequently Asked Questions

Q: WHY AGRICAP?

A:  Our specialty is financing food and agricultural companies, meaning we know your business very well. Because we understand agribusinesses, we are able to provide funding where other financial institutions won’t. We act as consultants and advisors, leading you through a myriad of potentially confusing obstacles to get the funding you need. Our industry expertise means quick turnaround times for funding.

Q. WHY AGRICAP? WHY NOT OTHER FINANCIAL CORPORATIONS?

A. What sets AgriCap apart from the rest is our unwavering focus on the Ag Industry. We were one of the first to offer accounts receivable factoring to agribusinesses and quicky added other complementary financial services to cement our commitment. Because we understand the ag industry, we've structured better rates for our clients than other less-knowledgeable financial institutions and act as consultants and advisors, leading you through a myriad of potentially confusing obstacles to get the funding you need. Furthermore, we designed our operations to be smaller and more streamlined, allowing for quicker turnaround times.

Q. WHAT IS "ACCOUNTS RECEIVABLE FACTORING"?

A. Accounts Receivable Factoring, or AR Factoring, or Factoring, is a financing service that allows you to convert your accounts receivable immediately into working capital. In the most basic of arrangements, AgriCap buys your accounts receivable at a discount and performs the necessary credit, collection, and accounting services. Of course, each arrangement is customized to fit your situation. Please contact us at 831.337.4125 or email us at kfuchs@agricap.com for a free personalized analysis.

Q. HOW MUCH DOES FACTORING COST?

A. The cost varies based on several factors including the creditworthiness of your customers, your terms of sale and your average collection days. Our rates are flexible and vary based upon your needs. If you have a seasonal requirement or a special circumstance that demands immediate attention, that’s “OK,” please talk to us about it.

Q. WHAT WILL MY CUSTOMERS THINK OF FACTORING?

A. Factoring of receivables has existed for hundreds of years and is one of the most time-tested ways to finance a business. Factoring in the U.S. has become a well-accepted form of commercial finance. It is estimated that the U.S. factoring industry does approximately $100 billion dollars in factored sales each year. Companies of all sizes, from start-ups to mature and even public companies, use various types of factoring services. In fact, it is likely that several of your customers are currently sending invoice payments to factored suppliers.

Q. WILL I NEED TO CHANGE MY INVOICING?

A. The invoicing process is simple: When you enter into the factoring arrangement, you will contact your customers’ accounts payable department and advise them to begin sending their checks for factored invoices to the AgriCap lockbox. Other than that, there are no changes to your relationships with your customers. Your normal flow of business remains undisturbed. Your name will appear on the invoices as it usually does. You merely need to add a legend on the invoice with our lock box address.

Q. WILL YOU CONTACT MY CUSTOMERS?

A. In most instances we will not contact your customers without your permission. We only contact when it benefits you: o help you collect past due invoices or to collect credit information.

Q. HOW LONG DOES IT TAKE TO GET SET UP?

A. After we have received your information we will provide you with a proposal within five business days. Funding depends on several things that vary from client to client, but it averages about twenty business days.

Q. HOW LONG DOES IT TAKE TO GET THE MONEY AFTER AGRICAP PURCHASES A RECEIVABLE?

A. QUICK. Usually twenty-four hours.

Q. HOW DO I GET STARTED?

A. Give us a call at 831.337.4125 or drop us a line at kfuchs@agricap.com.

We'll be happy to answer any more questions and help you through the application process.