Information About Invoice Factoring and Accounts Receivable Financing

Factoring Made Simple

How do I apply for factoring?
Applying for factoring is usually a quick and easy process! The simplest way is to apply online by clicking here.

What types of industries does factoring work best for?
Factors work with various industries and serve a diverse client base. Some industries that are factored are trucking, staffing, security firms, service companies, manufacturing, wholesale, distribution consulting, machine shops, and contractors.

Will factors do business with a start-up company?
YES! Many factors provide financing based primarily on the financial condition of the client's account debtors (your customers), rather than upon the financial condition of the client itself. By providing financing on this basis, factors can provide funds to their clients resulting in regular and predictable cash flow.

What if I have a prior bankruptcy or poor credit?
They can still help you. Many times, the underwriting decision is based upon the credit strength of your customer accounts and the integrity of your billing process. Relatively little concern is given to your credit or your company's financial strength.

What will it cost me to factor my invoices?
In most cases, your cost will be less than it would cost you to offer a discount to your customer for early pay. Depending on various factors, our fees can start as low as 1 1/2 % to 3.0%!

Once the account is set up, what is the turnaround time on getting funds?
Once established, advances can be made as frequently as desired by the client and on the same day the client submits its schedule of invoices.

Are we obligated to factor all of the accounts?
No. You are not obligated to sell any minimum volume of invoices.

Can the factor assist me in checking the creditworthiness of my customer accounts?
By collecting information from a variety of credit reporting services and private databases, the factor can unobtrusively review the credit strength of our Client's customer accounts and regularly inform you of any potential conflicts.

Can I still collect the accounts or will my customer accounts be subject to aggressive third party collection efforts by the factor?
Yes, you can continue to participate in the collection process. In fact, most factoring companies encourage their clients to participate in the collection process in the interest of preserving continuity with their customer relationships. As a financial incentive, the Client is rebated a part of the discount fee based upon a schedule of declining days outstanding.