The usual time it should take to set up a factoring relationship is a week to ten days. This would account for all facets of due diligence, having proposals agreed to, getting contracts sent out, checking the creditworthiness of account debtors and generally putting the deal together.
There may be complications, like a bank loan that needs to be paid off, or old UCC-1 filings that need to get cleared out and terminated and tax liens paid off or put on a workout plan. These things take time depending on the situation.
But in order to do all of this quickly we need your cooperation. If you promise to have the completed application back tomorrow and we don’t hear from you for three weeks, then don’t expect cash flow from your accounts overnight.
The process of setting up invoice factoring requires both parties cooperate just like any other financial transaction like buying a home or refinancing a mortgage. When the borrower does not respond in the manner they promised all it does is send up red flags about the relationship potential. Everybody is busy, especially a company that is growing beyond its ability to cash flow, so we will work the best we can to alleviate the headache and get you going as quickly as possible.