HOW DOES ACCOUNTS RECEIVABLE FACTORING WORK?
1) Your company provides goods or services to your customers.
2) You submit an invoice to your customer, and then submit a copy to a factoring company, such as Franklin Capital. It is also helpful to submit backup documents such as purchase orders, time sheets, and any proof of delivery. This invoice will notify the customer to pay the factoring company directly.
3) Your account manager verifies the invoice with your customer.
4) Once verified with your customer; you get up to 95% of the invoice value, less the expected fees. This is often through an ACH or wire transfer, usually on the same day you submit the invoice.
CANDIDATES & REQUIREMENTS
Candidates for our Accounts Receivable Purchase Program:
- Fast growing business outstripping its cash resources.
- Recent start-ups.
- Businesses that experience seasonal fluctuations.
- Businesses in a turnaround mode.
- Businesses in Chapter 11.
- Businesses reorganized through Assignments for the Benefit of Creditors.
Requirements to get started:
- Current aging of accounts receivable.
- Completed application.
In Our Clients Words
“If you need a factor I can’t imagine anyone better to work with.”