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

Do I Need to Provide Collateral?

Q:  Do I need to provide collateral? A:  You do NOT need to provide collateral to factor your invoices. Accounts Receivable Factors buy invoices on completed work, so in a sense, your work is the collateral. AR Factoring allows you to use your invoices to provide immediate funding. It can solve most cash flow problems related to slow-paying customers and … Read More

Do I Need to Factor Every Invoice for Every One of my Customers?

No, you get to determine which of your customers you would like to factor, as well as which invoices you would like funded.  You can factor all your customers, or only one customer depending on your cash flow needs. American Funding Solutions will run credit on your customer to determine if they credit qualify for factoring.  Once the credit limit … Read More

How Involved Will You be in Collecting on My Invoices?

Q: How involved will you be in collecting on my invoices? A: Collections are a very important part of running any business, however, many small business owners simply do not have the time or resources to put into it. When factoring your invoices, you also get a partner in helping with invoice collections. A factor will do “soft collections” to … Read More

What Payment Terms Should I Offer my Customer?

Less is More! The quicker your net terms the faster your invoice gets paid. We suggest no credit terms, but instead “Due on Receipt” But….  Many businesses require payment terms of Net 30, Net 45, or even Net 60 day.  Invoice factoring can be the answer.  Factoring puts money in your account while your net terms are ticking away.  The … Read More

Can I Factor Slow Paying Customers?

Q:  Can I factor my slow paying customers? A: There are two different views when it comes to what customers you should factor. Your factoring company will have specific terms that they can hold invoices for if they are a recourse factor. Most companies will offer NET 90 terms, meaning your invoice must be paid or offset by 90 days. … Read More

How Much Does Factoring Cost?

Invoices factoring or AR Financing is a great way to increase cash flow while not incurring additional debt. You get paid immediately for invoices instead of waiting 30-60 days for payment from your customer. But how much does it cost? That is the all-important question. Many people believe factoring is very expensive and only done when your cash flow is … Read More