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 new remittance address for payments related to your business.  We will also require that our address is shown on your invoices.  This helps to prevent any confusion with accounts payable because the address is provided in the letter and on each of your invoices.

We do not require that you factor invoices from all of your customers.  If you have a customer that pays very quickly, you are not required to factor that customer.  We would not sent the notice of assignment to that customer, and payments can continue to come directly to you for that customer.

Alternatively, once you decide to factor a specific customer, all payments from that customer would be sent to American Funding.  You would not be required to factor every invoice, but all payments would be sent to our address.  For example, if you want to factor only larger dollar-amount invoices for a specific customer and not factor the smaller dollar invoices that would be fine.  When a payment is receive for a non-factored invoice, the payment is sent directly back to you without fees.  This is done to prevent confusion in the accounts payable department.  We don’t want your customer to be confused about where to send payment for each of your invoices.  Instead, we have a “blanket” assignment of all receivables.  Then we reconcile the factored and unfactored payments for you.  We provide 24/7, real-time access to all payment received via our on-line portal.