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Accounts Receivables Financing FAQ
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What information do you need to start factoring my
accounts receivable?
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1. Complete our Short Form Application or the complete Factoring
Application or the Purchase Order Funding Application . We will
review it and contact you within 24 hours.
2. We will then need documentation about your company. Those
documents can be found under Complete Document Listing.
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How
long does it take to get funded?
The entire process can take anywhere from two days to
two weeks depending on how quickly we receive the needed
documents and the number of accounts to be factored.
Can we qualify for accounts receivable financing with a
history of credit problems?
Yes. CFS is more concerned with the credit quality of
your customers. |
Our business just started. Can we qualify despite the
fact that we have no credit history?
Yes. CFS works with new companies and factors invoices to provide the cash
flow they need to succeed. We will look at your
customers ability to pay, not yours.
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Can we qualify if we already have loans or a
line of credit?
Yes. Having an existing loan is not a
determining factor for qualification. However, as part
of your loan, you may have pledged your Accounts
Receivables as collateral. If this is the case, CFS will
work with you and your current lender to structure a
Subordination Agreement. This is a common occurrence,
and in almost all cases, the bank will agree to work
with us.
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What does accounts receivables financing cost?
Our fees depend on the industry, the credit quality of your
clients and the advance rates. A complete, simple to understand,
fee schedule will be provided before we begin funding. As we are
a Receivables Management firm, we ensure
that you understand exactly what the cost will be prior to
factoring. In addition, we will work with you to help you
minimize your fees.
How large does our invoice need to be to qualify?
We will accept single invoices as small as $100.
Do we have to factor all of our receivables?
No. You decide which invoices you want to Factor and when you
want to Factor them. You maintain control of your program.
Do you notify our customers to pay you, the Factor?
Yes. We send a simple notification of assignment letter to each
account letting them know that we have entered a factoring
agreement and that future payments should be made to CFS. In
addition, all invoices are stamped payable to Capital Funding
Solutions. Factoring is now very common and most companies are
accustomed to working with Factors.
How do you verify my Accounts Receivable? Won't my
customers wonder what is going on?
We are very sensitive to the image you have
developed with your customers. Prior to implementing a routine
to verify invoices, we work with you to develop the best system
for your accounts. We also ask your accounts how or what we can
do to make verification simple for them. It is essential that we
verify all of the invoices we acquire, but we go out of our way
to make it quick and simple for everyone involved.
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Is there an upper limit on the factoring invoices you
accept?
No. We can service any size transaction.
Are there any industries you do not service?
Yes and No. We avoid some types of construction projects, but
certainly not all. We do not Factor medical receivables.
Regardless of whether we Factor your invoices, if you complete
our applications, we will help you find a quality company that
will. |
Can we qualify if my accounts are not large corporations
or do not have outstanding credit?
Yes. We offer recourse and non-recourse Factoring. Meaning that
if you have some accounts that do not have much credit history
or do not have great credit, we offer a program that allows you
to take the risk of non-payment by simply repurchasing that
invoice. Once again, we'll work with you to find the solution
that best fits your needs. |
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Invoice Factoring Benefits vs. Other Financing Alternatives
Click above to view and print, pdf document: Compares
factoring accounts receivable to commercial financing such as bank loans,
asset based lending, leasing, private
investor and venture capital. Many types of businesses
including staffing, manufacturing, distribution, and services
utilize factoring to obtain money and cash flow for business
operations including payroll and other accounts payable
obligations.
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