Are you considering a switch to a new factoring company? Displeased with your current provider? Wondering about the ins and outs of swapping factoring companies? Here's everything you need to understand.
Factoring companies often file a blanket Uniform Commercial Code (UCC) to secure a primary interest on the invoices funded. The UCC is essentially a system used by lenders to keep track of who has lent money against which assets...
The oldest UCC filing signifies the 'first position' on the pledged collateral. This means that your factoring company has the primary right to collect payments on your invoices...
To switch factoring companies, the new provider must repay the old one...
The buyout figure is calculated by deducting any reserves from the Gross Receivables Outstanding and then adding the due fees to the old factoring company...
The cost of the buyout can potentially be zero if you can submit new invoices to the new factoring company for them to pay off the outstanding invoices at your old factor...
When switching factoring companies, it's best to expect the first funding to take two to three days longer than the usual setup process...
In some instances, the old and new factoring companies can collaborate through an Intercreditor or Subordination Agreement until the old factor is fully paid off...
Before joining a factoring company, you should have a clear understanding of many aspects. Here are some crucial questions you should've asked:
And other concerns such as: Do you use a bank lock box to post my customer payments?...
We relieve your headaches and stress of collecting on accounts receivables.
You have 24/7 account access 365 days a year.
When you call, you get to speak to a real live person.
Don't wait long periods for a loan. Many of our factoring deals can take place in as little as 24 to 48 hours. If you need capital right now or are looking to expand then factoring is the way to go. We work on your time instead of you working on a bank's schedule.
If you need cash and you're sitting on a lot of unpaid invoices then factoring with us is the way to go. We'll give you the cash that your business needs and collect from your customers.
Debt is risky while at the same time being beneficial to growing a business. Start-ups can relieve themselves of the risk of debt and still create capital with factoring.
If you're a start-up or your business has a poor history or credit then you can still get the cash that you need. Today's banking atmosphere makes it a challenge for even the most-qualified businesses to get a loan. Factoring takes care of all of that.
Without a collections department or a small staff, collections often come down to you doing all of the leg work. Our Factoring Service will alleviate that burden and provide the service that you're not equipped to handle.