We hope the following questions and answers will provide you with an understanding of invoice factoring, what it is, how it works, and how your company can benefit from our services to enhance your working capital and cash flow. Please contact us today to see how we can assist you with your factoring services.
Question: What is Invoice Factoring?
Answer: Invoice Factoring is the purchase of a valid Accounts Receivable between business/business for cash.
Question: Is Invoice Factoring only for companies in trouble?
Answer: Invoice Factoring provides your business the opportunity to grow, without giving away equity or taking on additional debt. Invoice Factoring is NOT a tool used only by struggling companies. Financially smart companies use factoring as a powerful tool to release capital tied up in your Account Receivables to meet your current operation requirements and increase production and sales.
Question: How is factoring different from a bank loan?
Answer: Factoring is NOT a loan; it is the purchase of a valid Accounts Receivable (invoice) from your business at a small discount.
Question: How does it work?
Answer: When a job for a customer is completed you will send us a request for payment along with the confirmation and BOLS. Instead of you waiting for your customer to send payment, we will pay you instantly – usually within 24 hours of the request.
Question: How do I know you will treat my customers well?
Answer: We are not a collection agency and do not harass your customers. We want to help you maintain your customers. Their loyalty and confidence are of utmost importance.
Question: How do my customers know where to send payments?
Answer: We take the responsibility of collecting payment from your customer. They will receive an invoice from your company with a stamp advising them that the invoice has been assigned and where to send payment to.
Question: Do I need good credit to be approved?
Answer: A company does not need to be credit worthy to factor. We leverage off your customers credit. You don’t need to be profitable or in business for three years like the credit criteria required by banks and other commercial lenders. If you have credit-worthy customers, you can factor.