FAQ
Top 10 Questions About Factoring
Factoring is the purchase of your accounts receivable (invoices) in order to provide you with the cash flow you need now. Factoring is a widely accepted financing option used by companies of all sizes.
1. How long before I can receive funding?
Typically within 24-48 hours of receiving your company's worksheet,
a proposal is issued to you. Upon acceptance, due diligence and
complete documentation is concluded. Funding is then within a few
days of initial contact with your company. Ongoing, it is usually
24 hours after your invoice submission.
2. Do I need to sell or factor all of my invoices?
No. Depending on the amount of additional cash flow you require,
you decide which invoices to factor from your company. Our service
allows you flexibility while providing your company with the cash
flow it needs to thrive.
3. How will I know the status of my factored invoices?
Many of our funders have an on-line service that allows you access
to your account and reports any time you wish. Additionally, our
funders assign you a Client Service Representative, who will be
your contact for any questions you may have throughout your relationship
with our funders.
4. Is factoring a recent financing option?
No. Factoring has been around for centuries. It's one of the oldest
types of financing, first seen in the United States in the garment
and textile industries. Today, factoring is a funding solution for
companies in all industries.
5. How
will our customers be treated throughout this process?
We respect the relationships you have developed with your customers.
We understand they are the backbone of your business and they will
be treated with the highest level of courtesy and professionalism.
6. What is the major benefit of factoring?
You receive cash immediately from your invoices and you’re
able to serve more customers now. It is as if you have COD terms
with your customers. You receive our collection and credit expertise,
while enjoying increased cash flow. Now you can concentrate on running
and growing your core business.
7. What does factoring cost?
Rates are based on the amount your company factors and how long
it takes your customers to pay. We are happy to provide you with
a FREE QUICK QUOTE if you give us a bit of information regarding
your business. There are many programs that can be arranged to make
this service virtually FREE.
8. How much cash will I receive from factoring?
Typically advances up to 90% are immediate. The balance (less
the service fee) is released to you upon payment of your invoices.
9. Will my customers think that my business is experiencing financial difficulty when they learn that I'm using a factor?
Absolutely not. Factoring is a long established and mainstream
financing option for businesses. It is likely that some of your
customers do business with vendors using a factoring service.
10.I have customers all over the US. Are there any restrictions?
No. We often arrange work with many businesses and government
agencies in the U.S. What matters is that your customers are creditworthy.