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Questions About Invoice Factoring

Over 3,200 clients funded
Learn More About Factoring Accounts Receivable
No up font fees to set up
No financial required
Funding in 3-5 days
Rates at
0.69% to 1.59%
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We Lend MORE Than The Bank

Learn More About Factoring Accounts Receivable

Learn More About Factoring Accounts Receivable
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$210,000

Valve Importer PO Funding
trucking companies

$100,000

Small Fleet Trucking Company
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$350,000

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$650,000

Invoice Factoring For Cyber Security Company

1st Commercial Credit Provides Questions and Answers About Invoice Factoring.

Please contact us for any questions you may have. The questions and answers provided below are generic, and some may apply differently to your industry or situation.

How Is Invoice Factoring Different Than A Loan From A Bank?

When making a receivable based funding decision, we will focus on the creditworthiness of your customers while banks will focus on your company’s financial history and cash flow. Accounts Receivable Financing or factoring is not a loan, therefore provides you with less debt on your company’s balance sheet. We can make a quick funding decision, while banks may take weeks—even months—to approve a loan.
Learn more on the difference between a bank and a factoring company.

Will My Company Be Eligible For Invoice Factoring If It Has A Loan?

If a bank or a lender has a lien on your company’s assets, you should let us know right away. We will ask the bank/lender to subordinate that lien. Some banks will accommodate the request and others may decline depending on your circumstances.

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1st Commercial Credit is a very fast, simple to join invoice factoring company. Learn more about our invoice finance program. Call today.

Our number one referrals come from loan officers willing to help out the client in cash flow needs. They are very familiar with this kind of interim financing. The other alternative is to pay off the loan if there is plenty of receivables to leverage the buy out. We have other alternative financial solutions in case the bank does not want to subordinate. A new alternative to consider if you have a large buyer is our trade payable finance program.

My Company Owes Back Taxes. Can I Still Apply For Invoice Factoring?

Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can discuss a lien subordination with the tax entity or request a payoff amount. We can use the initial funding to payoff the tax entity if there is enough leverage. More information on factoring receivables with a tax lien.

Receivable Financing Rates at 0.69% to 1.59%
18 Years In business & Over 3,200 Clients Funded
Fast Approval Process.
No Financials Required.
3 to 5 Day Initial Setup.
No Up Front Fees to Set up.
Low Credit Score Accepted.
Free Invoicing Software
If my company is considering bankruptcy, is factoring or accounts receivable financing still an option?

Please contact us prior to filing, there may be some options for you.

What information will you need from my company to begin the invoice factoring program?

A short application, your company’s most recent sales history, your company documents, a master customer list and a sample invoice.

Which customers would be good candidates for accounts receivable factoring?

Usually, 80% of your business comes from 20% of your customers and these would be the most likely to factor, however, we will factor 100% of your customer base as long as they are creditworthy. In order to approve your customer base, we will need their names, addresses, phone numbers and the amounts of credit desired for each client. This will save you time when submitting invoices to us.

Receivable Financing Rates at 0.69% to 1.59%
18 Years In business & Over 3,200 Clients Funded
Fast Approval Process.
No Financials Required.
3 to 5 Day Initial Setup.
No Up Front Fees to Set up.
Low Credit Score Accepted.
Free Invoicing Software
Can you purchase only a portion of my company’s invoices or one customer?

Yes, as long as it is not a one time deal. While many other factoring companies require all payments to go to the lockbox, we offer selective factoring in which you may choose the clients you want to factor, and can pick which invoices you would like to factor, or select to factor only a portion of the invoice if its a large invoice.

How long does it take to receive the first funding?

The initial funding takes between 3-10 business days after we receive your signed agreement. If you wish, you can send some invoices to be funded with the signed contract in order to expedite your funding. After the initial funding, your company can receive funds within 24 hours after invoice verification.

How much of my company’s sales ledger can be funded?

We can fund up to 100 percent of your company’s creditworthy accounts and depending on the industry, we may fund between 75 to 98% advance.

What should I do if my customer mistakenly sends the payment to my company?

The answer to this question will apply to any factor you deal with. This is very common especially with the first initial funding. If this occurs, the check must be sent to us immediately. Your company should never deposit checks that are to be applied to factored invoices. Your customer will be notified to pay us directly in the future.

How can I be certain that your company will treat my customers well?

The last thing we want is for you to lose a customer. We are not a collection agency. We will never harass your customers for money. Maintaining your customers’ goodwill and confidence are of utmost importance to us!

What should I tell my customer when they find out I am financing my receivables?

If an account debtor (customer of our client) who is unfamiliar with factoring questions the notice of assignment and asks what is going on, the business owner only needs to tell them they have chosen to use a company to manage and finance their accounts receivable.

You may be interested in other invoice factoring related topics:

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