Frequently Asked Questions

Why Do Companies Use Factoring?

Factoring is a product that helps companies that have slow-paying clients. These companies usually can’t wait 30 to 60 days to get paid by clients. Factoring your invoices provides you with cash that you can use to run your business. Companies often use the funds from factoring to: Pay employees Pay suppliers Build inventory Cover […]

How Do PO Finance Companies Pay Suppliers?

One of the most common reasons that companies look for purchase order financing is that they have a large purchase order and they need funds to pay their supplier. Suppliers usually ask for a down payment before fulfilling an order. Consequently, clients ask their purchase order finance companies to cover these down payments so the […]

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. The factor holds the invoice and makes a small profit when the […]

How Does Factoring Work?

Factoring is a type of financing that helps improve the cash flow of companies that have slow-paying invoices. This form of financing gives the client access to immediate funds, which can then be used to pay for business expenses and to grow. In this article, we show you how factoring works. We go over every […]

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 […]

How to Deal with Slow-Paying Customers

Dealing with slow-paying customers can be a major headache for business owners. This is a bigger challenge for small companies that don’t have employees dedicated to collections. Ultimately, slow-paying customers affect your cash flow and distract you from running the business. Improving your invoicing and collections is not difficult, but it takes some discipline. The […]