Frequently Asked Questions
How long does it take to get approved for financing?
Typically, between 2 and 4 days, depending on how fast we receive the necessary information from the company.
After approval, how fast is funding?
Can be same day, and depends on receiving the paperwork back from the Debtor.
What criteria are used to qualify a company for financing?
Contrary to what banks do, our criteria for factoring is forward looking, especially to the quality of the company’s accounts receivable.
Can you work with start-up companies?
Yes, again we depend on the credit worthiness of your Customers. Most banks will turn down a company with less than 2 years in business, but we do not.
Do you have an Owner’s credit score threshold to approve financing?
We do check the Owner’s credit report, but we are not bound to a predefined credit score limit.
Are you restricted in working with certain industries?
For factoring financing, the company must have B2B accounts receivable. Many of our clients are in the Trucking industry, or are Subcontractors in the commercial Construction industry. Typically, our clients have a proportionally high Payroll expense, like janitorial services for example.
What are you advance rates on factored invoices?
Usually a maximum of 80%, but can be as high as 95% in the Trucking industry.
What is the pricing for the factoring financing?
Between 2% and 6% of the invoice amount, depending on the advance rate and the time the advance is out before repayment is received.
What happens if the Debtor does not pay the invoice when due?
There are 2 types of factoring agreements: with or without recourse. With recourse, our client must repay us, or substitute the obligation with another invoice/debtor. Without recourse, is when the factoring company assumes the full credit risk of the transaction.
Do you call our Customers for collection purposes?
Normally we would first contact you if a Customer’s payment is late. However, we can assume all collection administration and follow up if you prefer.
Will I be contractually bound to use the financing for a certain timeframe and/or dollar amount?
We offer spot factoring which is a “use as needed” service. There are other options that do include contractual commitments, which could be more cost effective.
What geographical markets do you serve in the US?
We are located in the Dallas/Fort Worth metro area, but can operate throughout the USA.