Some companies who utilize invoice factoring only want to use it as needed. This means they want the choice of picking and choosing which invoices to finance. There are many factoring companies that set up the account to factor every invoice. They want complete control over the entire accounts receivable base. We DO NOT require this; you are free to choose which invoices you want to submit for funding.
There is a logistical issue though when deciding which customer accounts to finance. Once you determine that a particular customer account is suitable for receivable factoring all payments made by that customer will have to come directly to us for processing. The reason for this is, the accounts payable department of your customer will not be able to properly keep track of which invoices are paid to each ‘remit to’ address. So to simplify the interaction, once you have chosen a particular customer, all payment instructions are made to go directly to us. As a payment is received and we see that it is an ‘unfactored’ invoice – one you did not submit for funding, we turn 100% of that payment back to you without deducting any fees.
So the choice is yours, but the process is ours.