Invoice Factoring - How factoring invoices works

You need your invoice factoring now. Cash is needed to pay suppliers, make payroll and start those important projects. Factoring invoices is as quick as you get us documents to review. The invoice factoring services process listed below is similar to all invoice factoring companies.

Factoring Documents

Before factoring invoices, we will need to see financial documents from your firm. The documents that we need are listed at Comprehensive Document Listing - Factoring.

If you do not have all these factoring documents, we can give you a formal quote for our invoice factoring services with at least the following factoring documents:

1) Accounts receivable aging
2) Accounts payable aging
3) Profit and Loss Statement
4) Balance Sheet.

These factoring documents should be the most recent in your possession. You can fax, mail or email these factoring documents to us. Upon receipt we will give you a formal quote in 48 hours. Our quotes are almost always free except for the construction industry where the application fee is required with documents. On rare occasions, we may charge a fee to review your documents, but we will tell you in advance before you send them.

One of the things we will look for in these documents is any evidence of loans or liens using you accounts receivables as collateral. If you accounts receivables are pledged as collateral to another lender you will have to pay the lender in full before we can advance you funds. If you do not have the funds available to pay the lender we may be able to pay them off from you first advance from you first factoring contract These liens or loans are usually public documents located in each states UCC (Uniform Commercial Code) registry. If you have any bank loans you probably have a UCC filing unless you have specifically negotiated with your bank or lender to not include these assets.

Signing the Factoring Contract

After we have come to agreement on our factoring quote (fees, length of contract, etc) we will require an application fee from you. The application fee is $500 (some situations may require a higher fee). You can send to us this application fee by check or wire. We use this fee to generate the factoring contract, do various back grounds checks on you and your company and for a variety of legal searches.

The factoring contract outlines each party's responsibilities. We agree to fund you per the terms of the factoring agreement. You agree to give us bonafide receivables where the work or goods have been completed to the buyer's satisfaction. The factoring contract outlines the terms, fees, advance rate, interest charges, length of contract and a variety of other issues surrounding our relationship.

In addition we do require a personal factoring guarantee. This factoring guarantee say that you are giving us good receivables and in the event we are not paid on any receivables that were at your risk you will pay us.

Factoring with and without Credit Protection

Since we are a full service factoring we offer credit protection on your accounts. We will give you a credit line for credit worthy customers so in the event they don't pay we will pay you in full and we have the risk of non payment, this is also called non recourse factoring. Factoring where non payment falls upon you firm is called recourse factoring. We offer both and have a full time credit manager that is reviewing the credit worthiness of accounts to minimize risk of non payment. We know that you work hard and don't want you lose money to clients who do not pay their bills

First Funding -Factoring Invoices for Immediate Cash

After the factoring agreement is signed we are ready to fund you invoices. We will need from you the following

1) Schedule of Sales - This is web document that you have access to at our website. Every factoring company has a similar document with a different name but it usually captures the same information: your buyers name, payment terms, and date of sale, invoice number, and invoice amount.

You will fill out this form for each invoice you are submitting. Factoring invoices can be submitted daily if you wish. When submitting invoices for factoring we require:

2) Invoice on your letterhead
3) Purchase Order from Your Buyer
4) Proof of shipment of Goods to your buyer or some type of signoff the services were completed.

Once we have all the above documents we will fund you the advance amount against the gross amount of the receivables. For new clients we usually fund after we do verification with the buyer after goods are received for the first 3 to 4 contracts. Once we have a track record with you firm funding will occur the same day we receive documents and verification will be done on a random basis.