When a business is considering invoice factoring as a way to increase capital availability, they must be certain that their accounts receivables are clear to offer as collateral. If the business has used its assets to secure any credit from an individual or credit facility, chances are a UCC-1 financing statement was filed on that [...]

Invoice factoring is a different form of financing than purchase order financing. The dissimilarity is based on the work being done and the risks involved. Accounts receivable factoring cannot be utilized until the work is completed and accepted by the customer. Whether providing a service or selling a product, the customer has to be satisfied [...]

In order to use accounts receivable financing for growing a business, the work being performed must be completed and accepted. Submitting an invoice to be funded prior to the work being done is called “pre-billing.” A good example of this are advertising transactions. A magazine publisher has collected a group of customers who plan to [...]

Before getting started with invoice factoring, does the business have an existing loan with a bank? An important calculation to be examined when contemplating accounts receivable factoring is how to pay off a previous loan. Many times businesses have a line of credit with a bank which they have outgrown. Seeking invoice factoring may be [...]

When an invoice factoring company purchases the proceeds of an invoice and makes an advance, it is required by statute to inform the account debtor (customer) the assignment has been made. The factoring client has assigned the proceeds (payment) of an invoice to the factoring company. With proper notification, failure by the account debtor to [...]