Questions & Answers
Q. How will factoring benefit my company?
A. Factoring will benefit your company because:
- You will be able to grow and increase sales by factoring.
- Increased sales means increased profits for you.
- The additional sales, made possible through factoring, are a bonus because:
- These are sales you would not have been able to make due to restrictive cash flow.
- These are sales on which all of your fixed overhead has already been paid.
Factoring, which is geared to your sales, provides working capital for your business and is not restricted by a fixed credit line.
Q. When was the Franklin Capital Network established?
A. Franklin Capital Network was established in 1991. The Senior Management at Franklin Capital Network is experienced in providing creative financing solutions to small and middle market businesses across the country and internationally.
Q. What types of businesses do you factor?
A. We factor a variety of businesses including service providers, manufacturers, distributors, wholesalers, or any other business:
- which sells a product or renders a service
- that has been delivered or performed to the satisfaction of a customer
- whose invoices are supported by verifiable documentation (delivery note, bill of lading, time sheet, etc.)
- which sells on credit terms such as 30, 60 or 90 days from invoice date.
Q. Must clients factor all or only certain invoices?
A. We usually require clients to factor all invoices with certain exceptions.
Q. Will my customers object to their invoices being factored?
A. An estimated $100 billion worth of invoices are factored every year. With this significant amount of business being transacted it is extremely rare that customers are unfamiliar with, or would object to this common business practice.
Q. Can you purchase any invoices which are outstanding and unpaid at the time that we begin factoring?
A. We purchase any invoices which are less than 90 days old.
Q. What are your standard operating procedures for collection of past due invoices?
A. A collection procedure is agreed to between ourselves and our clients. We believe in constant courteous follow-up and working with both our client and his customer.
- We send out past due letters and statements of account on a timely basis.
- Every 30 days we send out an account statement to each customer.
(This statement is not a request for money, but is merely a summary of open invoices.)
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