Q:
How quickly can we begin receiving cash for our Accounts
Receivable?
A: Very Fast!
After approval most of our clients have cash within 24 to
48 hours. The approval process normally takes 3 to 5 business
days.
Q:
Who collects payment from our customers?
A: We have several different
programs available. Our most common transactions are set
up with the factor providing collection services with the
guidance of the client and customers send payment to the
factors lock box. In certain situations we can allow the
client to be responsible for collections and a lock box
is set up near our client’s location to streamline
the process.
Q:
What will my customers think?
A: Factoring
has become very common and most companies realize that rapidly
growing companies require more working capital than traditional
banks can provide. It’s very likely that your customers
have already sent payment to a factor in the past.
Q:
Do I need to factor all our invoices?
A: No, we
do not require our clients to factor all invoices. However,
in some situations it may make more sense to factor all
your invoices to receive a higher volume factoring rate
reduction.
Q:
Is Factoring a loan?
A: No, factoring
is the purchase of a company’s accounts receivable
as opposed to a loan that creates debt on the balance sheet.
You are simply speeding up your cash flow with factoring
by utilizing an asset your company already had.
Q:
What if we no longer need factoring?
A: With most
factoring companies you can terminate the agreement with
a 30 to 45 day notice. You should estimate your needs in
advance to determine which term length meets your needs
best to avoid any early termination penalties. We currently
offer: month to month, 3 month, 6 month, and 12 month options.
Never sign a deal with a factor for term length over 12
months.
Q:
How much does Factoring cost?
A: The cost
will vary depending on the overall factors in each deal.
You can review estimated cost on our factoring cost page.
GET
A FACTORING QUOTE NOW
Call
Us Toll Free at 1-877-876-2803 for a Free Factoring Quote |
