FAQ’s – Frequently Asked Questions
|Accounts Receivable/Invoice Funding [FACTORING]|
| 1. What is Accounts Receivable Funding (aka Factoring)?–
Accounts Receivable Funding, also known as Factoring, or Invoice Financing … is a quick and simplified way for you to get cash for your business when you need it. Use this alternative financing tool to sell your Accounts Receivable (one or more business Invoices) to a Factoring company and get cash for them immediately – in 2 days or less.
– What Does that Mean for Your Business?
2. What Kinds of Businesses Use Accounts Receivable (A/R) funding?
– A whole host of varied businesses that provide products and services to other Businesses (B2B) and to Government agencies (B2G), and offer credit payment terms by issuing Invoices to their customers.
– – These include ==> Manufacturers and Distributors of…
• Sports Equipment • Medical Equipt. and Supplies
• Office furniture • Apparel, Shoes, Accessories • Cosmetics
• Industrial products, including = > motors, machine tools,
• hydraulics, compressors, chemicals, audio/video equipment
– – Companies providing ==> Services such as...
• Temporary Staffing (office, nursing, skilled trade),
• Security Guards & Alarms • Cleaning/Janitorial services
• Graphics Designs • Architects • Engineers • IT Expertise
• Computer software • Bookkeeping • Cable Installers
• Trucking & Transportation… and many more. —>
(See HOME Page, ‘Our Services’ for additional businesses that benefit from A/R funding.)
– Just tell us a little about your company and its officers, your customers, how much money you need and how soon you need it. Then complete a short Application, and e-mail it to us. (Snail mail works fine as well.) We will respond to you the same day or within 24 hours.
– Not to worry. If you’ve issued invoices to creditworthy customers for work you completed for them, you’re still in a good position to qualify for Invoice Financing. Just let us know your circumstances up front so we can get you the best funding for your situation.
• Application – submit this along with the few requested documents.
– No long committee decisions, no big binder full of financials going back 5 years, no compensating balances, etc. Just the requested documents verifying the essentials of your business, and getting the most flexible plan that meets your financing needs.
6. How Soon can I get funding for my invoices?
– You can get funding as soon as your account is set up. Submit approved invoices, your Funder purchases them and wires you the money within 24-48 hours. You’ll get two payouts: the first will be the greater portion (around 75%-85+%) of the face value of the invoices. The balance is sent back to you as soon as the Funder/Factor collects payment from your customers (less the discount, aka the fee).
7. Anything Else I need to know?
– Yes. Your Factor will alert you to “red flag” financial circumstances surrounding both new and existing customers, to avoid potential bad debt. Also, you can review your account status online any time you wish, 24/7.
8. Can I Amend my agreement with the Funder if my circumstances change?
– Businesses and economic conditions are continually changing. Recognizing this and because they’re savvy and very flexible in dealing with clients, your funder can usually meet your growth or changing financing needs. A phone call to let us know what additional or changed services you require is all you need do. 424/ 394-1672
Know that we continue working on your behalf throughout your funding process and are always available to answer any of your questions.
Remember: “Sell Invoices on Monday and
Join the ranks of no-hassle financing users. Give us a call and get your business qualified Relax – no initial commitment – 424/394-1672
For your Personal Review, dial
Sea-Green Financial Services