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Why would a company sell their receivables?

Companies that encounter a recurring cash flow problem often can't afford to have cash tied up in receivables for 30 - 60 - 90 days.  They need the cash to meet immediate present financial demands of their business.

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Can we qualify if we have a bad credit history or are just starting in business with no credit history?

Yes, the background of the company in need of cash is of little importance.  It is the creditworthiness of the company's customer that really matters.  As long as the customers are going to pay their invoices, the factoring transaction can be completed.

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Can I factor my A/R if my company already has a loan or line of credit with a bank?

Sometimes. We have funding sources that can compliment and work with your existing lenders to enable you access to larger amounts of funding.

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How quickly do I get the funding?

Upon receipt of a completed client application packet, it takes approximately 5 - 7 business days to process.  After this initial set-up, fundings will usually be done in 24 - 48 hours.

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How are the fees for factoring services determined?

Fees vary from company to company.  They are determined by a combination of your customer's creditworthiness, average payment cycle, invoice size and  factoring volume.  Industry fees average from 2.5 to 4 % of the invoice amount for 30 days.  The fee for services is not paid until collection of the invoice.  You will be given a free quote as to your fee structure after submitting an application.  A due diligence fee (ranging from $350 - $700) is payable to the funding source only if you decide to proceed with funding.

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What will my customers think?

The process of selling a note or income stream has been around for centuries.  If you have ever owned a home, you probably were notified at some time to make payments to another mortgage company.  It's the same process.  In actuality, your customers should recognize the fact that you make good business decisions in obtaining the money owed to you immediately, and making the best use of that money rather than waiting months. Taking advantage of immediate collection is not a negative action, but rather, good business sense.  Since the turn-around time to obtain your cash is quick it clearly enhances the bottom line of any corporation that utilizes this profit tool. 

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How does the funding process work?

There are 7 simple steps:
1.  Submit a simplified client application and aging report.
2.  A proposal or verbal quote of your discount fee structure and advance rate is prepared for your review (quote turnaround time is 24 - 48 hours)
3.  If you wish to proceed, agreements are over-nighted to be finalized. 
4.  Due diligence searches are performed (5 - 7 working days).  Fees can vary from non to approximately $700 depending on funding source and state of filing.  Once these searches are completed, funding can begin immediately.
5.  A copy of your invoice(s) for products or services rendered is faxed.
6.  Invoice is verified and funds are advanced (usually in 24 - 48 hours).
7.  When the invoice is paid, the balance of funds are remitted to you less your discount fee.

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