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Here are some common questions our customers ask...
| How is factoring different than a loan from
a bank?
Factoring companies focus on the creditworthiness of your customers, while banks focus on your company's financial history and cash flow. Factoring companies will give you a quick decision, while banks can sometimes take months. |
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Will my business be eligible for factoring if it has an existing bank loan?
If a bank has a blanket lien (covering all assets), we will ask the bank to subordinate the inventory and accounts receivable. Some banks will accommodate the request and others may decline depending on your circumstances. If the bank does not subordinate, there is always the option to pay off the loan if there is sufficient receivables to do so. |
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My company is in arrears in taxes. Can I
still get
financing through factoring?
Tax problems are handled on a case-by-case basis.
Please let us know immediately so that we can discuss
a lien subordination with the tax entity or request a
payoff amount. |
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Do you provide financing to companies
in Bankruptcy?
With the permission of the court, we provide DIP (Debtor-In-Possession) financing to companies going through reorganization. |
What information will you need from my company
to begin the process?
A short application, a current accounts receivable aging,
an accounts payable aging, and a master customer list. |
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How long does it take to receive the
first funding?
The initial funding takes between 3-7 business days after we receive your signed agreement. After the initial funding, your company can receive funds within 24 hours after invoice verification. |
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What should I do if my customer mistakenly sends
the payment to
my company?
Unfortunately, this happens occasionally. If this occurs,
the check must be sent to us immediately. You should
never deposit checks for invoices that were already purchased by a factor |
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How can I be certain that you will treat my
customers well?
We do not want you to lose any customers. We will never harass your customers for money; we are not a collection company. |
What do I tell my customers when they
ask why my
business is factoring?
There are a few things that you want your customers
to
know.
- Your business is factoring to help facilitate
its
rapid growth.
- Their payment terms will not change.
- Their day to day contact with your company
stays the same.
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Must I submit all of my invoices to be factored?
No, you choose which accounts receivable you want to factor. Once an account is chosen and approved, we will need to factor all the invoices of that company to eliminate any confusion as to where the payment should be sent. |
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