Frequently Asked Questions About Company Factoring
We welcome questions and are always pleased to address them. Through the years we’ve gathered questions that are frequently asked and have listed them below along with the answers.
In addition to the questions, there are some misconceptions that warrants response and we have included them also. They are listed separately at the end.
If after you have read the list, your specific question or concern is not addressed please call us during normal business hours Monday through Friday from 9:00 a.m. – 5:00 p.m. Central Standard Time. Or you may email or write.
What is factoring?
How does factoring work?
Will I continue to bill my customers as usual?
How would a customer know to send or redirect payment to Factor?
Will you contact all my customers?
Am I required to factor all my customer’s invoices?
What if I don’t want my customers to know that I am factoring?
Is there a required minimum or maximum factoring volume?
What does factoring cost?
What amount or percentage of invoice will you advance?
When, how, and how often are advances paid?
When will any balance amounts be released?
Will I be required to sign a long term contract?
How can I qualify?
What if I have some credit issues, a prior bankruptcy, existing loan or line of credit?
Do you work with small businesses and start-ups?
How long will it take to set up an account?
How can I get started?
Is there an application fee?
What specific documents do you require?
Who does the collections, you or us?
Do you have any geographical restrictions, industries, or areas you won’t factor?
How can I keep track of invoices and payments?
What if a customer doesn’t pay an invoice?
Do I have to sign a personal guarantee?
What happens if I stop factoring?
I have heard very serious caution against factoring, why?
Read more on Accounts Receivable Factoring.