•
What types of
receivables can be factored?
Just about any valid invoice for services performed or products
delivered may be factored.
•
What is required before factoring invoices?
Before factoring your invoices, your customer must be
creditworthy
and your product or service must be completed,
delivered, and
accepted by that customer.
•
Do we bill on our
letterhead?
You continue to bill normally. Checks may be made payable to you,
but mailed to the factoring service.
•
What does accounts
receivable factoring cost?
Fees for accounts receivable factoring are competitive and terms
are
flexible. Your industry monthly volume, customer credit
strength, and
the factor will combine to determine your fee
structure. Typically fees
for 30 days range from 2 to 5 points.
•
Are government
receivables acceptable?
Yes, government receivables are acceptable. Since these are
common,
there are several funding sources that specialize in this
area.
•
Does accounts
receivable factoring make good business sense?
Yes! Thousands of firms like IBM, Georgia Pacific and Shell Oil
have used
this financial tool. Now your business can take advantage
of this
proven, debt-free, and flexible method to effectively
multiply your
working capital.
•
What is the smallest
and largest invoice that we can submit?
You may finance invoices for as little as $100. There is no upper
limit to
accounts receivables factoring.
•
What will my customers
think of accounts receivable factoring?
Receivables-based financing is used by many of the largest
corporations
in the world to improve cash flow, support growth, and
increase profits.
Many of your customers may use factoring services
themselves and
others have become familiar with it through other
vendors. The fact
that you qualify for this "credit line" makes a
strong positive statement.
•
Can we qualify for
factorings accounts receivables with a history of
credit problems
such as bankruptcy, IRS
liens or judgements?
Yes! That's another advantage of accounts receivables factoring.
Making arrangements with the IRS or the courts is common.
•
Can we qualify for
accounts receivable factoring if we already have
existing credit
lines or SBA loans?
Yes! Accounts receivable factoring compliments and works in
cooperation with your existing lenders to enable you to access even
larger amounts of financing.
•
Can we qualify for
accounts receivable factoring even if we are just
starting a
business and have no credit history?
Yes, you can qualify for accounts receivable factoring, if you
have
creditworthy customers.
