A Notice of Assignment is a letter that a factor will send to a customer that you choose to factor. The notice lets your customer know that the receivable has been assigned and that all future payments will need to go to the factor until the assignment is released. The Notice of Assignment contains other clarifying information for your customer. … Read More
What is a Notice of Assignment?
A Notice of Assignment is a letter that a factor will send to a customer that you choose to factor. The notice lets your customer know that the receivable has been assigned and that all future payments will need to go to the factor until the assignment is released. The Notice of Assignment contains other clarifying information for your customer. … Read More
What if My Customer is Also a Small Business?
A large part of your ability to fund invoices with a factor will hinge on the creditworthiness or your customers. Just because your customer is also a small business does not mean that they will not credit qualify. Many small businesses have been around for years and have great payment history. Providing their information to your account manager for a … Read More
What is the Difference Between an MCA and Invoice Factoring?
Invoice Factoring Can be less of a risk than a MCA When it comes to risk, there is a big difference between invoice factoring and MCAs. Factoring advances money based on an existing invoice. The money that your customer owes for the product or service is advanced to you through the sale of your invoice to the factoring company. MCAs … Read More
Do You Need to Verify My Invoices?
American Funding Solutions periodically verifies invoices sent in for funding. Our standard process is to send the invoice to your customer to confirm the amount invoiced and that all work is complete. We may also verify if the invoice is larger than usual as compared to previously submitted invoices. We also spot check invoices weekly for all clients. When spot … Read More
Will My Customer Still Send Payments to Me?
Customer Still Send Payments to Me? For any customer you choose to factor, payments will be sent directly to American Funding Solutions. We send a letter called a “notice of assignment” to your customer’s accounts payable manager. This letter lets them know that there is a business relationship between your company and American Funding. The notice of assignment provides the … Read More
What Happens if My Customer Does Not Pay the Invoice?
It does happen sometimes, though no fault of your own. If a customer does not pay an invoice, you as the business owner, are ultimately responsible. Your factoring company should work with you to make it as painless as possible. Most factoring companies will offset the unpaid invoice by holding onto weekly rebates until it is paid back. Another option … Read More
Will You be Taking Over My Invoicing?
You will continue to prepare your invoices and send them to your customer per usual. We would request that you “CC” (carbon copy) us when you email the invoice(s) to your customer for any invoice you would like to factor. This allows us to know that your customer has received the invoice. It also ensures we know who to contact … Read More
What is a UCC Filing?
A UCC (Uniform Commercial Code) filing is a legal notice a lender files with the secretary of state when they have a security interest against one of your assets. It gives notice that the lender has an interest, or lien, against the asset being used by you to secure the financing. The UCC-1 protects the interests of the lender in … Read More
How Fast Can I Get My Money?
Once you’ve started funding with us, you will receive money for your invoices the following business day. We also offer a same-day wire option for a small fee. Invoices must be sent in my 1 PM CT for a wire, or 2 PM CT for an ACH. Before funding with us for the first time, you’ll go through our application … Read More