Is accounts receivable funding a new financing option?
Accounts receivable funding is one of the oldest forms of financing. It has been around for more than 4000 years. This is a widely used and viable financing solution for all types of businesses that extend credit terms to their business customers.

How can accounts receivable funding help my business?
Factoring invoices provides an immediate influx of cash to your company. You eliminate the majority of the 30 to 60 day waiting period of getting paid by your customers. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating and more.

Use the following cash flow calculator to see how funding can help your cash flow. Set it up to model your situation. Once set up, add the cost of factoring to your cost of goods, lower your collection days and watch how your cash flow improves!   Cash Flow Calculator

See a working example of a company experiencing growth and utilizing invoice factoring. 

How is accounts receivable funding from a factor different than accounts receivable financing from a bank?
When making a funding decision, a factor will focus on the creditworthiness of your customers while banks will focus on your company's financial history and cash flow. A factor will also be able to make a quick funding decision, while banks may take weeks to approve a loan.

Will my company be eligible for accounts receivable funding if it has a bank loan or line of credit?
The simple answer is yes. Even if your company is very leveraged you can still qualify for accounts receivable funding. If a bank has a lien on your company's accounts receivables, you should let us know right away. We will ask the bank to subordinate that lien. This is a common occurrence, most banks will accommodate the request, but we must know this information in advance.

My company owes back taxes. Can I still apply for accounts receivable financing?
Yes, tax problems are handled on  a case-by-case basis. Please let us know immediately so that we can discuss the payoff of your back taxes or a lien subordination with the IRS.

I have had a past bankruptcy, is accounts receivable funding still an option?
Yes, your application will still be considered if you have credit problems or a past bankruptcy.

What information will you need from my company to begin the accounts receivable funding process?
Along with the application we will need your company's most recent accounts receivable and accounts payable aging reports, articles of incorporation or DBA filing, a master customer list, copy of your ID and a sample invoice with sample supporting documentation. For startups, please also submit a business plan and projected sales forecast, and an owner/officer history and profile.

Which customers would be good candidates for accounts receivable financing?
All of your customers should be reviewed. You will need to provide their names, addresses, phone numbers and the amounts of credit desired. Also anytime you obtain new customers, fax the same information to us, and we will check them out for you.

How long does it take to receive the first funding?
The initial funding takes between 1-3 business days after we receive your signed contract. If you wish, you can send your invoices to be funded with the signed contract. After the initial funding, your company can receive funds usually within 24 hours after verification that the product has shipped or the service was rendered.

Are accounts receivable funding fees tax deductible?
Accounts receivable funding fees are an expense and should be tax deductible. Please check with your tax specialist.

Will the invoices be verified with my customers?
Invoice verification is an essential, and accepted, part of the funding process. For the process to run smoothly, we suggest that you call you customers or send them a letter in advance to let them know that you are now working with a factor. The only change on their part is the remittance address.