Advantages
H2 vs Financial Institution vs Factoring Companies
One Will Make You Feel BLUE; The Other will Make You See RED
The advantages of utilizing H2 services compared to Banks and Factoring Companies*
H2 does not require personal assets as collateral like Banks must have.
* Factoring Companies : Same as Banks
H2 does payroll and invoicing. With a bank he would have to perform these duties, which takes him away from marketing and staffing, which earns him an income. Don’t believe he would hire someone for eight contractors.
* Factoring Companies : Same as Banks
If he is doing the invoicing and payroll himself, he can never go on vacation. We have two firms where the owner is the only staff, one went to China for three weeks, the other to Africa for a month. While they were gone, we kept their company going without them.
* Factoring Companies : Same as Banks
Being in the Contracting business our first twenty years, we understand our Clients business. Banks in most case do not. You try to educate a bank employee, and build a relationship, and on Monday morning you find he is no longer there. Has been promoted, left, or the bank has merged with another bank. We have been in business for over fourty-two years and plan on being around much longer.
* Factoring Companies : Same as Banks
We can react quicker than a bank. You can be a new firm, call us on Friday and tell us you have a new contractor starting on the following Monday that you want us to support. We would be able to make the first payroll on time. This is how many of our clients come to us, they get themselves in a box, have to make a payroll, and can’t get a decision in time from a bank.
* Factoring Companies : Same as H2
For our Clients we can support one contractor today, and a hundred tomorrow. Banks don’t normally work that quickly.
* Factoring companies : Same as H2, but biased against small managed payroll account
Once we have Clients, they stay with us, and if they don’t, it is because they go out of business. In the 22 years we have been providing financial and administrative support we have lost only one Client. This was a firm in Memphis, Tenn. Started with us having two contractors, after two years worked it up to fourteen contractors. Started doing the payroll and administrative duties, being a former banker, BUT, taking him away from marketing and staffing, may have contributed to his going out of business.
* Factoring Companies : Same as Banks
We are willing to work with our Clients, more than banks. Because of our background, we understand their business. Also, because we are doing the payroll and invoicing, in many cases we know as much about their business as the owner. We had a Client that had $90,000 of invoices with a .com customer that went out of business. We worked with them for a year, where now they are again a healthy company. A bank would not have given them the support we did.
* Factoring Companies : Same as Banks
We provide credit checks on their new customers, at no cost. Banks will not do this.
* Factoring Companies : Same as H2 - Most make it available, some charge their clients
Willing to work with our Clients on invoices older than sixty days. Banks can not
* Factoring Companies : Same as Banks
Comparison Matrix of H2 vs Banks vs Factoring Companies:
| H2 | Banks | Factoring Co’s | |
| Payroll & Invoicing | YES | NO | NO |
| Daily Continuity | YES | NO | NO |
| Faster Response Time | YES | NO | YES |
| Receivables reconciliation | YES | NO | NO |
| Credit Checks | YES | NO | YES |
| Aging Invoices > 60 Days Funding | YES | NO | YES |
| Collect, deposit, & report state & federal taxes | YES | NO | NO |
| Prepare & mail Client payroll checks | YES | NO | NO |
| personal assets as collateral | NO | YES | YES |
