Factoring Frequently Asked Questions

Factoring for Cash Flow Management and business financing

Factoring (Accounts Receivable Financing) is a widely used and viable no-loan financing solution for all types of businesses that extend credit terms to their customers. Here are some of the more commonly asked questions about factoring.

How is accounts receivable factoring different than a bank loan?

Will my company be eligible for factoring if it has a bank loan?

What types of industries are eligible for factoring?

Can start-up businesses use factoring?

What if I have a prior bankruptcy or poor credit?

What will it cost me to factor my invoices?

What is the turnaround time on getting funds?

Are we obligated to factor all of the accounts?

Can factoring companies do credit checks?

Will the factoring company subject my customers to aggressive collection efforts?

What information will be needed from my company to begin the accounts receivable factoring process?

Which customers would be good candidates for accounts receivable factoring?

Will a factoring company purchase only a portion of my company’s invoices or one customer?

How long does it take to get approved?

Factoring for Cash Flow Management and Business Financing.

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Factoring for Cash Flow Management and Business Financing.
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