Invoice Factoring FAQ
What is invoice factoring?
Invoice factoring is a funding tool for your business. We convert your invoices into fast cash. Allied makes it a very simple process for you. We have a quick Invoice Factoring Video that explains everything or give us a call 1-972-776-5300.
Is invoice factoring different from a bank loan?
Invoice factoring is not a loan. With Invoice Factoring, your business is not incurring debt. As a business owner, you are not asked to give up equity. You can receive funding on the current open receivables based on your customers’ credit, not that of your business. This is particularly helpful to start-ups where the business operating history is not yet established. Plus, with factoring, there are often no financial covenants to maintain or restrictions on funds utilization.
How long does it take to get cash?
As little as 48 hours for your first funding, and same day fundings are available once you become a client.
Fast cash is great. Are there other benefits when I factor my invoices?
Allied relieves you from the headache of collections. Allied pays you quickly for your invoices and has a friendly Allied team member work with your collections team on servicing your customers and obtaining payment. This allows you to recoup valuable time that can be spent on expanding your business.
I don’t need to fund all of my invoices. Do I have to send you all my invoices? Can I choose?
Yes, with Allied, you can pick and choose which invoices you wish to fund.
What if my company owes taxes? Can I still factor my invoices?
Yes, you can still factor your invoices. A conversation will help to determine the best way to do that depending upon which type of taxes are owed. Call 1-972-776-5300 to discuss your specific situation, or watch Charles in our Video FAQ.
What if I need to pay off my bank or current factor – how does that work? Do I need to pay them off first? How does my bank get paid off in a refinance?
No problem! Simply submit your invoices to be factored and Allied will payoff your bank or current factor directly with the funds generated from your A/R. If there is any excess after the payoff, you will be sent the remaining amount.
How is invoice factoring different from accounts receivable financing?
They are the same thing.
COMPANIES THAT BENEFIT FROM FACTORING QUESTIONS
My company is in good shape. Can I still factor my invoices?
Yes, and factoring is faster than bank loans. Factoring is another tool for you to fund growth opportunities, react to unforeseen challenges or fund payroll needs. Factoring gives your business flexibility.
What industries use invoice factoring?
All kinds: staffing, oil and gas, telecom, distribution, manufacturing, startups, etc. Take a look at our Recent Fundings for some real world success stories.
What size/age companies use invoice factoring?
All sizes and ages. We work with startups as well as medium sized and very large businesses. Because invoice factoring is not a loan, we can fund you with less restrictions than a traditional bank. We can put together a funding package that meets your particular needs.
What are the funding fees?
We can help you with an exact answer. It depends on the volume, quantity of customers and your industry. It probably costs less than the prompt pay discounts you are offering your customers. We can approve you in 24 hours!
APPLICATION PROCESS QUESTIONS
Why should I choose Allied to help me with invoice factoring?
Allied has been around for over two decades and is the #1 factor of choice of many large banks when they cannot help their customers – they send them to Allied! Allied is a member of the International Factoring Association, Commercial Finance Association, and is rated A+ by the Better Business Bureau. Our company bios tell you all about us, and, we were voted in the top 20 for “2016 Best Places to Work”. We want to help you succeed.
Does my business qualify for invoice factoring?
We can get you a fast answer. Let’s get on the phone to discuss it 1-972-776-5300 or we can contact you.
What information do you need to process my invoice factoring application?
We will need a few items that you probably already have on hand. The items will vary depending upon if you are a startup or established company. We can give you a quick list by emailing us or calling us at 1-877-404-9904.
CUSTOMER RELATIONSHIP QUESTIONS
Do I still generate and send out the invoices to my customer or do you do that?
You will still invoice your customers as you always have. Simply send a copy to Allied.
How do I know what has been paid? Where do I see that information?
Upon funding, you will receive an online login where you can access all kinds of information. This client portal will show you what has been paid, check images, remittance details, A/R aging reporting, etc.
What will my customers think if I factor my invoices?
Most customers don’t think anything about it because the notice letters are sent to an accounts payable clerk in most cases, and not your contact issuing the POs and contracts. Factoring will enable you to quickly take on new growth opportunities or respond to unforeseen challenges.
How will customers know where to send payment?
Upon funding, Allied will send your customers a Notice of Assignment letter that includes the new remittance address.
Allied can approve you in less than 24 hours. Call us toll free at 1-972-776-5300.
Allied was the first and only financial partner that brought us solutions to our capital issue needs.CFO, Consulting and Staffing Company, Texas