Frequently Asked Questions

What's the difference between the CACS Program and just getting a Receivables Loan?

CACS Receivables Servicing

  • Minimal impact on the balance sheet: Asset to asset, this allows you to record this as receivables to cash, with the note of the contingent liability due to full recourse.

  • Utilize guaranteed funding at a lower cost and eliminate unnecessary overhead

    • 0.5% funding fee​

    • 1.5%* covers ALL other costs (postage, paper, reporting, customer service, reporting, basic collections, labor, online resources)

  • Convenience of review: Online app for immediate reference and utilization of records, including invoices and statements.

  • Daily monitoring of every account's status: We provide you with constant updates and recommended action on any patterns showing trouble or critical accounts.

  • Extend the benefit to your customer: We offer payment plans to customers in need of assistance with paying off their account

*fee is adjusted and set upon entrance into the program based on analysis of business

Receivables Loan

  • Negative impact on the balance sheet: Asset to liability

  • Potentially expensive interest rates, or even rejection

    • 6-8% interest rate (0.5-0.7% funding fee equivalent)​

    • No assistance with servicing receivables, resulting in the associated overhead costs (labor, paper, tracking, etc.)

  • No online review available unless provided by proprietary software

  • No monitoring provided

  • No benefit to your customer

What are your service fees?

From the merchant, all receivables are purchased at a "discount" which is determined after analysis made of the business at the point of bringing the merchant into the program. This is based on risk, services utilized, as well as volume and price of the invoices. This translates to the only fee the merchant pays to utilize our entire Accounts Receivable services. Contact us for an estimate as to the cost for your business to utilize our program.

What are your collection practices?

First and foremost: We are not a collection agency. While we can execute collection actions up to the point of legal action, we are a Servicing company. This means that we manage and service your receivables, allowing you to dictate how we proceed with collection efforts. You never have to be afraid of customers receiving collection calls without your notice and permission.

What is "full recourse"?

The CACS Program is a full recourse program. This means that upon entering into the program, the merchant personally guarantees every receivable sold to CACS. In the event an account reaches 120 days of delinquency and there have been no successful collection attempts, the merchant agrees to buy back the receivable. There are many actions taken to assist in the prevention of this being necessary:

  • The merchant can select who to allow to hold a charge account

  • Our vigilant reporting allows us to detect and take action on delinquent accounts before they hit a point of danger to the merchant

  • We manage reserve accounts for merchants for trouble accounts that may need bought back

  • Payment plans extended to the customer to help ensure collection of the delinquent amount

Maintaining a full recourse agreement allows us to provide you more of your cash immediately after sale, instead of forcing it into an untouchable reserve account. At any point the merchant may request to maintain a reserve account as a precautionary preference.