Questions We Are Most Commonly Asked Include…

Is Factoring a recent financial tool?...  How popular is it among corporations to manage their cash flow?  The invoice factoring industry is a multi-billion dollar industry and like your company… growing.  It has probably been around as long as other financial services.  So it is unlikely you are the first company of your clients' to utilize this valuable financial resource.

What is the cost of factoring invoices?  The rates to factor invoices depends on individual invoice amounts, the length of the terms given, and the total monthly volume.  That is the best reason to get a factoring quote.  We offer plans starting with factoring rates as low as 2%.

Should I bare the expense of factoring our invoices?  Only you can make the decision of what is best for your corporation.  That being said, the majority of organizations currently accept credit cards as a method of payment.  They do this for the convenience of their customers.  So why balk at facing the expense of the convenience or flat-out need of your company?!

Is account receivables factoring a loan or debt?  Unlike a debt or loan, you aren't responsible for repayment of funds advanced.  It should be looked at as an advance of accounts receivables.  In other words, factoring companies are buying the invoice(s).  The client still bears the responsibility of payment with or without an assignment of payment to a third party (a factoring company).

What kind of cash can I expect for our invoices?  Eventually you'll be paid for the entire invoice less the factoring rate.  We are able to offer most companies an 80% advance in as little as 24 hours.  After your client remits their payment, the balance will be forwarded less the factoring rate.

What happens in the event our client doesn't pay?  The primary reason we can't advance the entire invoice is we bear the loss, if the client files for bankruptcy protection.  If the client is slow or refusing to remit payment, we offer assistance in the collection process.

Are there any long-term contracts I am required to sign?  We don’t require you to lock into any arrangement with us.  Ultimately, your company chooses what invoice(s) it factors and when.

Will I have to audit our books or supply our financials or a business plan?  No…  At least not for the sake of getting the invoices factored.  Only your client's ability to pay and verification that services have been rendered and/or products have been delivered will come into play.