first step in the funding process is getting your account established
with us. This is a relatively quick and painless step. We have a
factoring application that normally takes around 15 min to complete.
Once you complete it and fax the required documentation which normally
consists of invoices and an accounts receivable aging report we
will send your application to underwriting. Our in house underwriter
make sure we have all the required documentation drafts the contract.
Once terms are acceptable and the contract is signed we are ready
to start factoring. This whole process can take anywhere from 3-5
Once your company has delivered goods or services to your customer
you can start selling us invoices. You can either send the original
or fax copy of the invoice to us to process. The requirement of
an original invoice is dependant upon the type of industry you service.
companies can factor invoices once their loads have been delivered.
The trucking companies debtor almost always requires an original
invoice and bill of lading before they will remit payment. Therefore
the trucking company must overnight the original invoices with backup
documentation to our operations center for funding the following
the invoices for Factoring
Once your account is established we wait for you to sell us your
invoices. When you need cash just send over your invoices to be
factored. Our operations staff will take a couple minutes to verify
the invoice and the creditworthiness of your customer. If your invoices
make the wire deadline you will be funded that day.
Invoices do not need to be sent in for factoring the day they are
created. You can age or seasong the receivable up to a month with
the goal of lowering your factoring fees. The factoring fees start
the day your invoice or scheule of invoices was funded.
Your top customer usually pays on day 45 even though you have extended
them 30 day terms, however your business doesn't need funding immediately.
You can season the invoice for 15 days and then send it to be factored.
If the invoice pays on day 45 your factoring fee will be half of
what they would have been if your had factored it immediately.
All invoices must have credit approval which is a quick and necessary
process. It is designed to protect the customer from incurring too
much bad debt. Our processing department will normally run a Dun
and Bradstreet or similar credit check on the detor. Once approved
a credit limit is set and the credit it updated on an ongoing basis.
We protect you as much as possible from the threat of bad debt.
Once credit is approved you will be wired the advance. The advance
is usually between 70% and 90% of the original invoice amount. You
can then use this money for payroll, vendors, taxes, or business
The Factor does the administrative work of processing eventually
collecting payment on the invoice. A notice of assignment is typically
sent to the account debtor instructing them to remit payment to
the Factor when the invoice is due. Once the payment comes in from
the debtor and the check settles the transaction is closed.
Once the transaction is closed the reserve, which is the percent
not funded minus the factoring fee will be released back to the
company. Now you are ready for the process to happen all over.