7 Ways To Attract A Factoring Company

1. Bookkeeping: install accounting software and use it regularly to track the company accounts receivables.
2. Customer Credit: Show you have a program in place to check the credit of customers who you offer terms for payment on sales.
3. Line Amount: Know the amount of new invoices you prepare monthly and how much you are considering factoring.
4. Business Model: Do you invoice for work completed and get acceptance from the customer?
5. Assets Available: Are there any pre-existing loans that use accounts receivable as collateral?
6. Team: Who is going to be responsible and the persons backing them up?
7. Loan Package: Pull all the information together in a folder ready to send to the factoring company, including factoring application, current Balance Sheet, Income Statement, Payables & Receivables aging reports, history of the company, new contracts being awarded, other assets owned by the company, copies of formation documents, and any information pertaining to bad news that might be revealed through the factoring due diligence process.