Can I Factor My Past Due Invoices?

Most factors will purchase invoices that are slightly past due.  If you have net 30 payment terms a factor may be willing to purchase an invoice that is 40-45 days old. The factoring company would need to verify that the invoice has not been paid yet.  If your invoice is significantly past due, for example, 80-90 days it is then … Read More

Will You be Bugging My Customer?

American Funding will never bother your customer. We try to stay behind the scenes and allow you to maintain the relationship with your customer. We do what we call “soft collections” for our clients. We will reach out via email at 45 days if the invoice hasn’t been paid. We ask if Accounts Payable has the invoice in their system … Read More

Will My Customer Need to Complete a Credit Application?

Your customer will not need to complete a credit application.  Instead, American Funding will pull a No soft credit inquiry on your potential new customer using a commercial credit reporting agency.  We just need the business name and address to pull a commercial credit report.  This type of inquiry does not affect your customer’s credit score or show as an … Read More

Will I Build my Business Credit by Factoring?

While factoring will increase your cash flow it does not help to build you business credit directly. Factoring companies report to the top credit reporting bureaus monthly, but they only report on your customers unpaid invoices. They do not report on their clients, instead they report on their client’s customers. Get Business Capital without lowering your Credit Score If you … Read More

What is PO Funding? How is it Different than Invoice Factoring?

Purchase order financing (PO funding) helps businesses fulfill product orders.  If sales outpace your incoming cash flow, then purchase order financing might be a good fit to fulfill your customer order. Funding is sent directly to your vendor to purchase the product.  Once the product is shipped to your customer, an invoice is created and then factored to pay-off the … 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