Get Cash Now for your Invoices.
Get Cash Now for your Invoices.

What to expect
You begin by filling out the client profile. This profile will cover basics such as your company's name and address, the nature of your business, and information about your customers.

The factor will use the client profile you submit to determine if your business is suitable for factoring. This process is simply the factor analyzing the risks versus the rewards, using the information you provided.

Remember the factor will attempt to determine the creditworthiness of your customers independent of their credit history with your business. The factor wants a broader view of their overall credit status.

Once submitted, the Client Profile will be accessed by up to 4 factors that can meet your needs. Each factoring company competing for your business will begin to determine the best rate and terms they can provide you. They will call you directly to discuss your business and explain the value added services they offer.

During this initial stage you will also cover basic financial arrangements with the factor. For instance, what will be the monthly volume of invoices you want to factor (i.e. how liquid do you need to be)? What will the advance rate and the discount rate be? How quickly will the factor issue the advance to you? What services does the factor provide?

The answers to these questions will vary depending on the financial strength of your customer(s) and the expected monthly sales volume to be factored.

In the factoring business, volume is all important. The higher your volume(the dollar amount of invoices you factor), the more favorable your rates will be.

Once approved, you can expect to negotiate terms and conditions. The negotiation process takes several aspects of the deal into consideration. For instance, if you want to factor $10,000, you can't expect as good a deal as a company that wants to factor $100,000.

During the negotiation process, you will become well aware of what it costs to factor your invoices. Compare the offers you receive. After you reach an agreement with the factor, the funding process will begin. The factor conducts due diligence by researching your customers' credit and any liens placed against your company. The factor also confirms the legitimacy of each invoice before advancing cash to you.

Click here to fill out a Client Profile and start getting your cash immediately.

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