Your business moves fast. When cash is tight and credit isn't the answer -- we help fast.
Factoring is the purchase of your accounts receivable (invoices) in order to provide you with the cash flow you need when you need it. Factoring is a widely accepted business practice used by large, mid-sized, and small companies.
In most cases, we can have you the cash you need in 48 hours. Once you've established your account, the process takes just 24 hours.
Here's how it works. You perform a service or deliver a product and you are ready to invoice your client, the amount is $25,000 (it could be as high as $100,000). Fax a copy of the invoice to Facteon so we can begin working for you right away, then overnight us the original.
Do I need to provide Facteon with finanical statements or an audit of my books?
No, we never ask you for financial statements or require a company audit. The only information we need to get started is contained in our Startup Checklist.
Do I need to sign a contract? There are no contracts with Facteon. We can provide you cash for one invoice or cash for all of your invoices.
Once you create your Facteon account you can use it as much or as little as you'd like. The bottom line is that you're in control.
For what types of receivables will Facteon pay me cash?
Any type of receivable for which a service has already been rendered or a product has been delivered. There are just a couple of exceptions that your Facteon representative will go over with you.
We pay you 70%-80% of the invoice amount right away. When we receive payment for the invoice, we send you the remaining 20%-30% less Facteon's service fee. View the Facteon Test Drive to learn more and take a look at our rates table.
Selling your receivables to Facteon only changes the address to which your clients remit payment. Your clients don't need to pay faster, and the name on the check (your business) stays the same.
How does Facteon receive payment? The same way you do. We deliver your invoice and Authorization Letter to your client once services have been rendered or your product has been delivered.
Facteon does not require a personal guaranty of collection. If your client's business goes bankrupt and payment is not remitted, Facteon assumes the loss of funds that we advanced to you.
Selling invoices (receivables) to a third party like Facteon has been a standard business practice for hundreds of years.
By working with Facteon, your payment terms can stay the same as they are today. You don't need to pay any faster and the name on the check stays the same.
You will receive an original invoice and Authorization Letter with each invoice that involves Facteon.
Even though you will be sending payment to Facteon, they are not a collection agency and they will not be calling you to collect payment.
If payment is not remitted due to a dispute with you, we will work with you to reclaim funds.
Instead of mailing a check to our business, you simply redirect payment to Facteon. Facteon should be notified if payment terms or amounts are going to change.
Our business is not in trouble. In fact, it's just the opposite: it is growing fast and Facteon accelerates my cash flow to fuel that growth.
We'll provide the text of a letter that must go to each client whose invoice you submit for funding. Simply pull up the letter, make sure your client's name and address info is correct, print it out ON YOUR LETTERHEAD, sign it and send the original to us."
We'll call you to confirm receipt of your online form and your faxed Authorization Letter and Invoice.
Then, like all factoring companies, we begin our UCC check to confirm you receivables are free and clear of any liens.
Facteon will do a credit check on your client invoices to insure payment of the invoice to Facteon. This is standard practice in the factoring industry.
Facteon Representatives are experienced with a proactive policy that teaches you how to notify clients of your relationship with Facteon.
Clients understand that your business is growing and that you want to continue extending generous credit terms to your best customers.
A typical initial payment up to 80% of the invoice amount is wired to your bank account. When your client pays your invoice, you will receive the remaining balance less our fees.
Once your client has paid an invoice, you will see a settlement detail and the final amount due to you from Facteon.
As a repeat customer, you'll only need to provide us an Original Invoice, Bulk Invoice Schedule and an Authorization Letter and we can wire you cash in under 24 hours
We collect personal information at your discretion so we can provide you with a better Web experience and an expedited process. The more we know about you, and the more complete the information you provide, the faster we can deliver.
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