Questions you need to ask before committing to a new Factor finance company

You’ve decided to start Factoring your accounts receivable invoices for immediate cash. What are some of the questions you need to ask before committing to your new Factor finance company?

  1. “How long does your contract require me to work with you?”
  2. “Can I leave before the contract maturity date?”
  3. “How much will it cost me to end our contract before the maturity date?”
  4. “If termination fees, how do you calculate those fees?”

Regardless of what the account executive tells you over the phone, make sure and double check the contract. Look for a section called “Term” or “Termination”

TIP: A contract that has no specific length of time specified, that ties you to the Factor is in your best interest.

You need to decide if you want Non-recourse factoring. In our experience, non-recourse is the best. Simply put, if your customer doesn’t pay the Factor, the Factor can’t come after you for the money they’ve already advanced you; hence the term “non recourse”

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True Non-recourse should cover you in everything accept product delivery or service issues. Here are some questions you need to be asking for True Non-recourse Factoring.

  1. “Do I have to sign a personal guarantee?”
  2. “If the Payer goes Bankrupt am I protected?”
  3. “If the Payer doesn’t pay, but didn’t claim bankruptcy am I covered?”
  4. “What happens if the Payer doesn’t pay until after the invoice due date?”
  5. “Will I ever be charged back or have to repurchase the invoice?”
  6. “Do you charge your fee upfront and take it out of my advance or the reserve amount collected at invoice maturity date?”
  7. “Are you holding a reserve?”
  8. “Does my rate increase as the invoices ages?”
  9. “Do I have to Factor all my business invoices with you, or can I Factor select invoices?”
  10. “At what age does the invoice get Charged Back?”
  11. “Is the rate fee FIXED on a Charge Back Invoice or does the rate fluctuate?”
  12. “How soon after the invoice is paid do I get my reserve?”
  13. “What is the cost to get setup with your Factor Company?”
  14. “Is there any application fee?”
  15. “What is the minimum you require, that I have to Factor each month?”
  16. “What if I don’t meet these minimum amounts, what are the fees if any?”
  17. “When do I pay my UCC financing statement fee; Before or after I Factor my first invoice?”
  18. “Will you fund on faxed, scanned or copied documents, or must you have the original?”
  19. “Does the rate increase if the document submitted for funding is not the original?”
  20. “How long do I have to submit the originals before I start getting charged late fees?”
  21. “How much are these late fees?”
  22. “How are short pays and chargebacks handled?”
  23. “How am I notified in the event of a dispute resolution and what is the process?”
  24. “What do you do if the Payer says they paid me directly, but I tell you they did not?”
  25. “Is the Payer required to produce a front and back copy of the delivered check proving it cleared, in the event of a dispute?”
  26. “Can you ACH direct payments to my bank account?”
  27. “Can you split payments; Like half of the advance ACH direct deposit and half to Western Union or Money Gram?”
  28. “Does your contract include provision for Field Audits?” Some factors want you to pay their costs in the event they need to come to you for an audit you in your local city, state.
  29.  “Does your contract force me to pay your attorney fees?”
  30. “What does your UCC filing cover? Is there a lean on the Accounts Receivable or all assets?”
  31. “Do I have to factor all of my customers? Once I start Factoring do I have to include all my customers, moving forward?”
  32. “What are your fees to get me my money? What payment options do you offer, ACH, Wire, Mail Check, Fuel Card?”
  33. “Is there any per invoice fees?”
  34. “Is there any other fees in addition to the factoring fee?”
  35. “Do you pay a referral reward if I refer a new Factoring customer to your company?”

Make sure you’re getting the best offer when Factoring your Accounts Receivable Invoices. Use Factor App – Where Factors compete to Buy your open accounts receivable invoices for immediate cash.

*Copy the Questions above and email them to the top 3 Factors you’re considering. Ask them to replay to each question within an email so you can compare your options and find out which Factor is right for you! 

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Why Choose Factor App? Because one Factor does not fit all!

As a business owner, being able to choose who you work with is important. People are different and sometimes won’t see eye to eye.  That is why we created Factor App!

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If you’re thinking about Factoring your accounts receivable invoices, shouldn’t you get to pick and choose who you’re work with? I mean we’re talking about your business and most important your Money!

Factor App – is the fastest and easiest way to Factor your receivables.

1.) Snap a picture of your Invoice

2.) Tell us the amount of the invoice

3.) Submit invoice

Factors COMPETE to buy your invoices, so you get the best deal and most money when Factoring.

Factor App is a simple and FREE way to Vet New Factors, to see which business style most closely matches your way of doing business. Take advantage of Factor App now and get paid as soon as today for your accounts receivable invoices.

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“Having influence over your important decisions, makes the business – well, yours.”

Turn Accounts Receivable Invoices Into Immediate CASH – Factor App

FACTOR

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Factor App – Fast, easy factoring using your Smartphone!

Download Factor App to SHOP your accounts receivable invoices for the best deal! (Factors compete to buy your invoices)

“If you’re not shopping your invoices, you’re loosing money!”

for iPhone – Download here

for Android – Download here

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Are you thinking about factoring your accounts receivable invoices for cash? Use Factor App and make ’em compete for your invoices!

Factor.bid – Where factor banks compete to buy your invoices.

Turn Invoices – Into CASH

It’s easy:

  1. Download Factor app
  2. Snap a picture of your invoice or upload an invoice as PDF file or picture file
  3. Click submit, and within a few minutes you’ll have competitive offers to buy your accounts receivable invoice.

If you’re not shopping your invoices, you’re loosing money!

Factor App “Get paid as soon as today!”

 

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