How to Start Factoring Your Accounts Receivables
As business owners, finding the capital to keep moving could be a problem. Invoice factoring is a fast & simple way to fund your growing business. The straightforward application process makes it easy to secure the working capital you need.
To start, you’ll need to find the right factoring company for your business based on your size, location and industry. That’s where we come in. We’ll connect your business with a factor that can meet all your needs.
Next, the factoring company will ask you to complete a one-page application. The application is very straightforward and asks for basic company information, like name and address, as well as who your largest customer is, for example.
Once you’ve finished the application, the following documents may be requested by the factoring company:
- Accounts Receivable Aging Report
- Copy of Articles of Incorporation
- Customer List
- Invoices to Factor
Once the factor receives the application and documentation, you’ll likely be approved in as soon as 24 hours.
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How to Start Factoring: The Process Explained
1. Complete the application process
First, you’ll get your account setup. After submitting a one-page application and a few simple documents, you’ll typically be approved 1-2 days. Call 855-513-2473 to get started now.
2. Submit invoices to factor
Now you’re approved and ready to send your invoices to the factor. The factor will verify the invoices and advance you the cash, usually within 24 hours. Advance rates vary by industry, but you can expect advances up to 95%. The remainder is held in a reserve account until payment is collected from your customers.
3. The factor collects from your customers
Your customers pay the invoice on the terms you already have in place with them.
4. The factor releases the reserve
Once your customers pay the invoice, the reserve amount is released back to you, minus a small factoring fee.
Additional factoring resources
The Factor Finders Difference
Factor Finders offers customized financial solutions for businesses experiencing fast growth, managing seasonal sales patterns, or dealing with slow paying customers. We act as a broker and can set you up with a factoring company that specifically suits your needs. Invoice factoring is the ideal solution for firms lacking enough credit or history to obtain a bank loan. Funding decisions are based on your customer’s credit worthiness, so a less-than-perfect credit history is OK. You will be able to obtain funding debt free! We’re committed to helping your business secure the funding you need to grow.
Get the funding you need!
Turned down for bank loans? No worries – it’s easier to get approved for factoring.