- Nationwide Invoice Factoring Company
- Phone 301-681-0080
Invoice Factoring Process
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Creative Capital Associates, Inc. > Blog > Invoice Factoring Process
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Guarantee Of What Exactly
Most commercial financing, such as invoice factoring, normally require the leading shareholder of the company to sign a personal guarantee …
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Bank Is On First
Legally you cannot have a bank loan that is secured by accounts and use factoring in parallel. The factoring company must have first security position on the accounts receivable it is purchasing for the purposes of making advances. Additionally since you have a loan contract with the bank, you would be putting the loan in jeopardy
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Is Factoring Right For Your Business?
Using invoices as collateral, factoring companies provide commercial financing by making advances on accounts receivable. An invoice is defined as a product and/or service that has been delivered / completed and accepted by a creditworthy customer.
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Pre-Billing Not Acceptable
Submitting an invoice to be factored by the factoring company prior to the work being done is called pre-billing.
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Factoring Deliverables
initially setting up your agreement with the customer, specifically outline the work to create DELIVERABLES or MILESTONES that allow you to invoice. This is much more preferable than billing along the way aka PROGRESS billing.
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Monthly Factoring Volume
One of the early questions raised by the factor will be, how much accounts receivable do you have outstanding currently, and how much will you generate monthly on an ongoing basis.
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Factoring Relationship
In many cases there is daily contact with the factor, or in other cases the factoring client is depending on weekly payroll funding.
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Ultimate Factoring
Factoring companies rely largely on the verification process for establishing the veracity of invoices. Generally in reoccurring billing situation this …
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Credit Where Credit Is Due
The function of factoring invoices is to provide capital by making advances on creditworthy accounts receivables. This means the customers …
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