This is how it factoring works….Assuming you are the customer

• The factoring company works with many funding sources and investors giving us the ability to customize packages to suit all of your needs.
• The funding company will keep you informed at each stage throughout this transaction.
• They want to learn about your company, about you and your particular situation and your needs.
• They gather certain information, fill out an application, arrange the  funding source and submit your application to the funding source.
• The requirements for converting your receivables to cash are more flexible than they are for conventional banks (banks are highly regulated and have to operate within limited parameters).
• Factoring companies work with dozens of funding sources and investors, which gives us the ability to customize packages to meet your specific needs.
• The fee charged by the funding source (usually from 2 to 5%) will be the only cost you will incure. Some funders require a small "Due Diligence" fee. Medical and construction funding fees might vary.  
• You will receive, usually within 24 hours, a proposal or quote that you can evaluate.
• If you choose to accept, the funding source will conduct its due diligence on the transaction.  Upon the successful completion, closing documents are prepared and executed.
• Funding is completed according to the agreement.  Money can be sent to you by check or wire transferred to your account. 
• Can be reached by phone, fax or email.

Here is just a sample of the services
and features that Factoring Programs can provide you

Factoring Services

Invoice Processing – In most cases, the factoring service will mail out your invoices to customers, pay for the postage, post invoices to the computer, deposit checks, enter payments and produce regular reports. All you need do is generate an invoice as you normally would and we take care of the rest.

Credit Receivable Management and Consulting – The factoring company’s extensive credit and accounts receivable assistance is available at no charge and is often less costly than maintaining your own in-house credit department.
They serve as your credit department, accounts receivable department, and collection department.

Courteous Collection - The factoring company understand the relationship you have with your customers. Heavy handed techniques to collect your invoices are not used. Working with your customers so they understand factoring and how it helps you serve them better.

Back Office Support - This helps you reduce the mailing, time and collections on your accounts receivables.

Plus Much More

Factoring Receivables Features
Same Day Invoice Funding – Factoring entities will buy your invoice and give you an advance, up to 80 or 90%, depending on the circumstances. In the first 12 to 24 hours that you supply them with invoices for goods and services that have been shipped and accepted.

Processing Receivables - The factoring company will buy your invoices from a faxed copy of the invoice. Just send them the original invoices in the envelopes provided so they can mail out the originals for you.

No Long Term Contracts - You can give thirty days written notice to terminate the services any time

No Start up Fees - You are charged only for the invoices that are bought from your company. In some cases a small application fee is requested. 

Learn Accounts Receivables Factoring | Learn How Accounts Receivables Factoring Works