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

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