Frequently Asked Questions About Factoring
Q: What is factoring?
A: Factoring in general business terms refers to the sale of or a loan against specific invoices, freight bills or similar instrument
Q: What type of businesses qualify for
A: Most any business to business transaction can be factored such as supplier to vendor, general contractor to sub etc. In the healthcare industry most 3rd party billing can be factored.
Q: Is factoring expensive?
A: No. If the use of factoring does not at very leas pay for itself we do not recommend it's use.
Q: What do factoring fees usually run?
A: This varies with industry, volume & risk but generally it will cost no more than offering a 2/10-30 to clients (2% discount if paid in 10 days)
Q: Why not just offer my clients the
discount to pay early?
A: If that works for you, we agree. Why not?
On the other hand, if clients are taking the discounts but still paying normally, if not enough clients are using the program to make it effective or if you would just like all your invoices consistently paid in 24 hours then factoring may be a better choice for you.
Q: How do I get started?
A: This is the simple part. Just submit the contact form and we'll get started. No Cost Consultation, Free Quote, No obligation, no hassle, no problem. If it looks like something that will work for you great! If not that's ok too.
We want is what is best for you and your situation. You decide at each point whether you want to proceed further. It's that simple.