What is Process of Factoring?
The Process of Factoring is:
- Complete the factoring application and submit with the required documents (A/R aging, sample invoices, Vendor Agreements & Purchase Orders)
- Receive a written proposal outlining the terms and rates from the Factoring company
- Sign the proposal and the Factor finishes final due diligence, sends you the Factoring Closing documents for you to sign and begins verifying your invoices
- After verification, monies are wired to you
- You continue to send the factor new invoices every day/week and funding’s continue
- When your customers begin to make payments, you receive your balance owed (earned reserve) minus a factoring fee