In a world full of varying financial solutions, it seems that they all get grouped together. In reality, each option comes with a blend of unique characteristics. At Transfac Capital, our forte is accounts receivable management and funding (factoring).
What separates factoring from other financial services, such as ACH and SBA loans? This is the question we will be answering through a series of articles, aptly titled “Factoring Facts.” From the ideal clientele to the time it takes to get financed, we intend to answer all of your questions.
Tip 3: Managing Invoices
Accounts receivable financing includes the selling of invoices to a factor in exchange for immediate cash. Sounds simple enough. However, effort on your side is required if the factoring process is going to be a success. The following questions and answers are the ideal introduction to your role as a business requesting the assistance of a factor.
How do I Submit Invoices?
Invoices are submitted with a completed schedule of accounts, as well as other documents such as the bills of lading.
How do I get a new customer approved?
Submit new customer information to your account manager for review prior to the invoices, or simply go to our Green Light/Red Light option inside your portal.
How do I Know what Invoices are Unpaid?
Your business will receive an A/R Aging Report on all open invoices. Furthermore, you can check the status of invoices at anytime online for free.
What Happens if an Invoice doesn’t Pay?
This question depends on whether the factoring service is recourse or non-recourse. With recourse funding, the invoice will be returned if unpaid after 90 days. Meanwhile, the factor assumes the liability for unpaid invoices with a non-recourse agreement.
If you would like to know more about how factoring can help your business grow, contact us at (888)222-2840. A member of the Transfac team is waiting to answer any question you may have!
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