Frequently Asked Questions

How is a Subordination Used in Invoice Factoring?

In most cases, setting up a factoring account is relatively simple. Once the factoring contracts are signed, the factor files a UCC lien to secure its position against the accounts receivable, sends notices of assignment, and starts funding the account. Usually, this process is done fairly quickly. One of the most common reasons to delay funding a factoring […]

What is a Factoring Company?

A factoring company specializes in financing invoices from businesses that have cash flow problems due to slow-paying customers. Factors don’t lend money. Instead, they purchase the accounts receivable from their clients at a small discount. The client gets immediate funds for the receivable, and the factor makes a small gain when the invoice is paid […]

How Does Factoring Work?

Factoring is a type of financing that helps improve the cash flow of companies that have slow-paying invoices. Usually, a factoring company purchases the accounts receivable of the client. This purchase gives the client access to immediate funds which can be used to pay for business expenses. This solution has a number of advantages and few disadvantages. […]

What is Non-Notification Factoring?

Non-notification factoring is a form of invoice factoring that minimizes interactions between the factoring company and your client, thereby enabling clients to operate with fewer monitoring restrictions – making the program more user-friendly. We can offer non-notification programs to select clients. The problem with conventional factoring One of the main challenges for clients that choose a conventional factoring […]

How Quickly Can Invoice Factoring Companies Provide Financing?

If you do things correctly, you can get your first round of funding within a few days, and subsequent financial transactions can often be completed within a business day. Note that his varies based on circumstances. However, you need to do a few things to make sure that you get funded quickly. The Basics Most […]

Why Must My Customer Send My Payments To The Factoring Company?

One of the chief objections that clients have with using factoring to finance their businesses is that their customers will need to remit payments to a new address, and usually in the name of the factoring company. Actually, notifying the customer of the new payment procedure is an important part of the notice of assignment. But why […]

Common Problems When Factoring Invoices

Unlike most business financing solutions, invoice factoring is a hands-on form of financing that requires regular interaction between the factoring provider, the client, and the customer who pays the invoices. Since this type of transaction has a number of “moving parts,” it is not unusual for some invoice factoring transactions to encounter problems. This article identifies some common […]

Dealing with Slow-Paying Customers

Dealing with slow-paying customers can be a major headache for business owners. Slow-paying customers affect your cash flow and distract you from important matters. And if you have too many slow-paying customers, your business could encounter problems and risk missing critical payments for suppliers or payroll. This leads us to the question – what is […]

Disadvantages of Factoring Invoices

As a factoring company, we obviously believe that factoring financing is a great product with numerous advantages. However, factoring financing is not right for everybody, and, like any product, it is not perfect. This article helps you understand some of the most common disadvantages of factoring financing so that you can decide if it is […]

Best Factoring Rates – How To Get Them?

Most companies seeking factoring use a shotgun approach in which they try to contact as many factoring companies as possible and submit as many applications as possible with the hope of getting the best factoring rate. While this approach is common, it seldom works. A better approach is to evaluate factoring in a systematic way and […]