ACCOUNTS RECEIVABLE FUNDING
FREQUENTLY ASKED QUESTIONS

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  1. How does accounts receivable funding work?
  2. What type of business can take advantage of this alternative funding source?
  3. Must I agree to finance a minimum volume of future receivables?
  4. Can a business with a history of bad credit (or a new business with no credit) qualify?
  5. Can my business qualify if we already have existing credit lines, SBA loans or are a debtor in possession (Chapter 11)?
  6. How hard is it to get approved?

ANSWERS TO QUESTIONS

  1. How does accounts receivable funding work?
    Simply put, accounts receivable funding is the purchase of accounts receivable from a business at a discount. It is designed for businesses that need money immediately, and can't afford to wait 30, 60, or 90 days for a customer to pay. In most cases, either the business owner can't meet his cash demand (because, for example, his customers are slow to pay or income is low due to a seasonal slowdown), or his business is growing so rapidly that its cash flow can't keep up with its growth.
  2. What type of business can take advantage of this alternative funding source?
    Any business qualifies that generates an invoice to other businesses or government and delivers a verifiable product or service.
  3. Must I agree to finance a minimum volume of future receivables?
    No. Finance one invoice or as many as you need to meet your cash flow needs. Stop or continue as needed.
  4. Can a business with a history of bad credit (or a new business with no credit) qualify?
    Yes! Another benefit of accounts receivable funding is that it depends on your customers' creditworthiness, not yours. (And, as part of the factoring service, the research to assess your customer's creditworthiness is done for you.)
  5. Can my business qualify if we already have existing credit lines, SBA loans or are a debtor in possession (Chapter 11)?
    Yes! Our credit line complements any loan you may have or are seeking. We work with your existing lenders to enable you to access additional funding.
  6. How hard is it to get approved?
    Very Easy. There is a simple, streamlined application and quick approval process. (Unlike bank loans that can take weeks to process and require volumes of paperwork, most applications are approved within 24 to 48 hours.)

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