Whenever we are attempting to qualify a small business for invoice factoring there is a certain degree of due diligence that is required. Due diligence is the process of delving into the background and history of a potential client. The checking them out, looking under the hood part.
Here are some due diligence documents you should expect to deliver;
o A fully completed and signed by the owners application
o A short narrative explaining any adverse events notated in the application, like a bankruptcy, arrest, dispute, etc.
o A copy of the Articles of Origination stamped for approval by the State of origin
o Verification of EIN with a pre-printed IRS letter or form
o Any amendments, name changes, DBA filings that affect the name of the entity
o Pertinent background information on how sales transactions are done
o Photocopy or scan of company owner(s) drivers license
o Copy of current company Balance Sheet and Income Statement
o Copy of current A/R and A/P aging reports
These documents are largely what will be required unless the review of these documents raises additional questions.
Some factoring companies will charge a due diligence fee, we do not. The entire process of setting up factoring account with Creative Capital Associates is free.