Do I need to be an established business, operating a minimum number of years, to be approved? No. we pride our self on catering to the financing needs of small-to-medium size businesses, regardless of their operational stage. Even pure start-ups are welcome in most cases, as long as the accounts receivable are straightforward (i.e., not guaranteed sales, progress payments, etc). We routinely finance start-ups, companies that are recently unprofitable, those with wild swings in their business cycle and even those needing assistance with various tax issues. Businesses that do not qualify for bank financing are our most successful customers.
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What size business will you finance? We can factor any size business as long as the invoices are from credit-worthy customers. Some of our clients began factoring with their first sale; others were well-established businesses.
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How long does the process take to get started? Within 24 hours of receiving your basic company information, we'll issue a proposal. If it's accepted by you, we conduct due diligence and complete all documentation. Initial funding typically takes place about one week from the time we receive all necessary documents. After that, funding generally occurs on a recurring basis within 24 hours of your invoice submissions.
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Are my receivables held as collateral while my company is factoring? Yes. We require a first position security interest on all accounts receivable.
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How quickly will I receive funding? We fund all verified invoices from approved customers within 24 hours. Quick turnaround is one of the main reasons businesses choose us over other factoring companies.
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Do I need to sell all my invoices? No. You decide which invoices you want to submit for factoring to help successfully manage your financial needs. We provide you with a flexible financial service that allows you to create the cash flow you need to be successful.
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What reports will you provide for me? We provide you with status reports on each invoice we've purchased (e.g., those that have been paid and when, which invoices are still outstanding, the balance in your reserve account, etc.). You can also access daily and weekly reports with full account details. These reports are typically available on-line 24/7. Back to Top
How do I receive the money from my factored accounts? We can wire funds directly to your bank account, send a check via an overnight service or send a check via the U.S. mail.
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If I factor, can my business still borrow money from other sources? Yes! That's one of the big advantages of factoring, as we typically only take a security interest in your accounts receivable as collateral for our purchase of them. Your machinery, equipment, intellectual property, inventory and real estate generally remain unencumbered and available as collateral for other lenders. If a commercial bank provides you with credit, they almost always take a security interest in ALL your assets. This means you generally cannot borrow from any other source-unless the bank subordinates its interest in those assets, since you have no collateral to offer another lender.
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Can I still factor if my business has already borrowed from a bank? Sometimes yes-and sometimes no. You can still factor if your bank has not taken a security interest in your accounts receivable. This is rare, but it does happen. Otherwise, we must work with your bank to arrange for them to subordinate their interest to us-or work out some other acceptable arrangement. If you have an existing loan and would like to determine if you can still factor, fill out our pre-qualification form and will contact you to discuss your options. Back to Top
