The Funding Process

Almost any factoring company you choose will most likely operate using this process:

• You choose the customer invoices you wish to factor, providing the business name, address, and amount you want to factor for a particular business customer.
• Credit is verified and limits are established for this customer. (There should not be a charge to you for credit validation.)
• You send original invoice and documentation from the customer stating receipt of goods/services to the factor.
• The factor will verify that your customer received the goods/services rendered.
• The factor will send the agreed upon percentage of the invoice amount  by wire directly to your business banking account.
• The factor contacts your business customer informing them that they have been authorized, on your behalf, to service the invoice. The invoice is sent to your customer with the factor’s address and identification and instructions for your customer to make payment to the factor.
• Once full payment is received by the factor when due, you receive your remaining funding under the terms of the factoring agreement.