Whether trying to secure funding from a factoring company, a bank, leasing company, venture capital firm or seed investor – one bit advice that will make things go much easier; Do what you say you are going to do. This one phrase can make all the difference when talking about using other people’s money.
Processing an application for invoice factoring is a fairly simple task. A factoring company can get an account set up within a few days if you, the client, cooperates with providing documents needed to complete the due diligence phase.
Usually a simple application and an accounts receivable aging report will be enough to get a term sheet for receivables factoring. But once the application is submitted there are a handful of additional documents that are necessary, just like applying for any sort of loan. For example; copy of Articles of Incorporation, proof of EIN, verification of paid 941 payroll taxes etc.
The delay often happens when the factor is looking for these additional due diligence documents. Unfortunately this is usually preceded by the borrower/client being in a frantic rush. In such a hurry that it sometimes takes days and weeks with constant reminders to get basic forms completed and returned.
Invoice factoring can be the fastest access to capital for a growing company, with a little help from you.