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How soon can you issue a factoring proposal?
A proposal can be issued very quickly after we have received your application/information.

Is accounts receivable funding a new financing option?
No. Accounts receivable funding is one of the oldest forms of financing. It has been around in one form or another for more than 4,000 years. Until the mid-1980s, most people thought accounts receivable funding was only used in the textile and garment industries. Today accounts receivable funding is a widely used and viable financing solution for all types of businesses that extend credit terms to their customers.

How can accounts receivable funding help my business?
By providing an immediate source of cash flow for your company. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and more.

How is accounts receivable funding from your company different than accounts receivable financing from a bank?
When making a funding decision, we focus on the creditworthiness of your customers while banks will focus on your company’s financial history and cash flow. Plus, since accounts receivable funding is not a loan, there is no debt on your company’s balance sheet.
Best of all, we will make a quick funding decision, while banks may take weeks—even months—to approve a loan.

Will my company be eligible for accounts receivable funding if it has a bank loan or line of credit?
If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien in our favor. Because this is a common occurrence, most banks will accommodate the request, but we must know this information in advance.

My company owes back taxes. Can I still apply for accounts receivable funding?
Yes, Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can discuss the payoff of your back taxes or a lien subordination with the IRS.

I have had a past bankruptcy, is accounts receivable funding still an option?
Previous credit problems or bankruptcies are considered on a case-by-case basis.

What information will you need from my company to begin the accounts receivable funding process?
Along with the application, be sure to include your company’s most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or DBA filing, a master customer list, and a sample invoice. For startup companies, please also submit a business plan projected sales forecast, and an owner/officer history and profile.

Which customers would be good candidates for accounts receivable funding?
Ideally, we would like to fund all of your customers. First, we need their names, addresses, phone numbers, and the amounts of credit desired. This will save you time when submitting invoices to us. Also, anytime you obtain new customers, send the same information to us, and we will check them out for you.

Can your company purchase only a portion of my company’s invoices?
Absolutely, but remember that higher numbers of receivables purchased regularly can result in more competitive rates. Terms can be especially flexible when there are large numbers of invoices issued to a larger, rather than smaller, pool of customers.

How long does it take to receive the first funding?
After we receive your signed contract, the initial funding on an invoice is within hours after invoice verification. If you wish, you can send your invoices to be funded with the signed contract. After the initial funding, your company can receive funds usually within an hour after verification.

Do you verify invoices with my customers?
Invoice verification is an essential, and accepted, part of funding. Because factors verify invoices with customers, they can tell clients if there is a customer service problem right away. A non-factoring client may not notice the problem until the invoice becomes past due. By that time, it may be too late to save the account. For the process to run smoothly, we suggest that you call your customers or send them a letter in advance to let them know that you are now working with a factor. If you need assistance in writing the notification letter, we will be happy to provide you with a sample letter.

What should I do if my customer mistakenly sends the payment to my company?
This might happen, especially with the first invoice. If this occurs, the check must be sent to us immediately. Your company should never deposit invoice checks that were already purchased by the factor. We also ask that you notify your customer to pay us directly in the future.

What happens if my customer doesn’t pay the invoice?
This depends on whether your company entered into a non-recourse or recourse agreement with the factor. In a non-recourse agreement, the factor will absorb the credit-related loss. However, with a recourse agreement, your company will have to reimburse the factor—either by having the invoice deducted from the next advance or by replacing it with another eligible invoice.

How can I be certain that the factor will treat my customers well?
The last thing we want is for you to lose a customer. We are not a collection agency. We will never harass your customers for money. Maintaining your customers’ goodwill and confidence is of utmost importance to us!

For additional information please submit the Contact Form. The office that handles your local area will contact you as soon as possible.

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