Will my customers think I'm in financial difficulty if they find out I am using a factor? Absolutely not! Factoring is a viable financing option for all businesses. As long as it is handled in a professional manner, your clients will understand you're doing what's necessary to create cash flow for your business. Most of your clients are accustomed to dealing with factors, which is a $150 billion business annually in the U.S. alone. Remember, factoring has been around in various forms for several centuries. We are perceived as a professional arm of your organization. We position ourselves as your outsourced credit department. Most informed business professionals today are aware that factoring is a common financial tool used successfully by companies of all sizes.
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If my customers know that their invoices are factored, won't they take longer to pay? No. Often, just the opposite is true. If your customer is a large corporation with its own invoice-payment policy, it will make no difference who the creditor is. They will adhere to their credit policy and pay accordingly. If your customer is a smaller or closely managed company, chances are they will be inclined to pay faster knowing that we, as a Factor, are a prime reporter of credit information to credit bureaus and an influential credit-reference resource.
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How will my customer know where to send payment? When you factor with us, we ask you to send a letter to your customers, identifying us as your funding source and requesting that payments be sent to our secure lock-box account.
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What does factoring mean to my customers? The only difference to your customers is where they send payment and to whom payment is made. Payments are made to the factor and sent to our secure lock-box account. Your customer relationships, in fact, will likely improve. By using our collection services, you'll no longer be burdened with the uncomfortable task of collecting from customers. You'll be able to concentrate on business-and not waste time or resources on collections. Periodically, your customers will be contacted by mail, fax or phone to confirm the validity of invoices.
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If my invoices are purchased do you bill my customers? No. You invoice your customers as usual and fax a copy of that invoice to us. After verifying the invoice, we'll make an immediate cash advance to your company. We will follow-up with the customer to ensure prompt, accurate invoice payment.
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When I use factoring services, where does my customer send payments and to whom are payments written? When you factor it is easy. All you do is change the remit to address on your invoices and payments are mailed to a lock-box address. Back to Top
How do you communicate with my customers? Our factoring team communicates to your customer through letters, faxes and occasional telephone calls as part of our accounts receivable management/collection services. The letters ask your customers to verify the invoices and direct invoice payments to us. Should your customer default on payments, we will first contact you before taking any action.
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Does the location of my customer matter? No. we invoices can be factored from credit-worthy companies anywhere in the U.S.
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