Is Factoring Expensive?

Factoring Your Receivables is an excellent way to increase your cash flow, but how much does it really cost? Typically, if you have net 30 terms with your client you will pay between 2-5 percent.  Most factoring companies charge 1% of the total invoice every 7-10 days. For example, if your invoice is $1,000 and goes out 38 days on … 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

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

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