Will Invoice Factoring will give you cash-flow to run your business?
Alliance One is an Invoice Factoring Company, we are located in New York. We have over 50 Years of experience in the Financing Businesses in 49 States (No CA).
Invoice factoring is when a company sells its accounts receivable to a factoring company at a discounted rate for immediate cash. Your company provides a product or service, once the services have been rendered or products have been delivered, you invoice your customers and wait to get paid.
If you sell your open invoices to factoring company, you no longer have to wait 30, 60 or 90 days for your customers to make their payments. You can send us a copy of the invoice, we verify the validity for each invoice, then advance you the lion share of the face invoice amount within 24 hours. We hold back a small percent of the invoice amount and put it in your reserve account. The reserve money remains in this account until we are directly paid by your customer. Once we are paid we send you back your reserve money less the invoice factoring fee.
All businesses need working capital, invoice factoring is a fast and affordable way to finance your company. You pick and choose the invoices you want to sell from the customers of your choice. You are not required to sell us all of your invoices and you do not have to factor all of your customers. Most factoring companies require you to sell them 75% of your book of business, we only require that you sell us one invoice every 30 days over the one year agreement period.
Alliance One LLC is not a collection agency, we do not call your clients demanding payments, we are your financial partner. Our sole purpose is to make sure you have the cash-flow that your business needs. For more information, see what is invoice factoring or if you are ready to take the first step, please complete our non-binding factoring application here.
Most invoice factoring companies operate the same way with some very important distinctions, such as the cost. Alliance One is a traditional factoring company, meaning we only have one fee to your, which is our factoring fee. All factoring companies charge a factoring fee and most charge an APR on top of their factoring fee, which is based on the amount of money they funded you, that is still outstanding on a monthly basis. Alliance One DOES NOT charge you this double fee, we do not charge an APR fee.
So... how do you know which factoring company is the right fit for your company? While most customers are only concerned with the factoring fees (rightfully so) you also need to be concerned with other very important aspects, such as your account representative. The account rep that will be assigned to your account will be working with you and your customers on daily/weekly basis. You want a seasoned professional calling your customers, not someone that is new in the industry that has bad etiquette or a poor disposition. While most factoring companies operate the same way, the fees for factoring company to factoring company very much vary. If you do not want to pay a double fee, if you are looking to work with seasoned professionals and be harmonious with with a reputable company, Alliance One will be happy to work with you.
The first step is to complete our non-binding application here. Once we receive the application, we will run some quick searches to make sure your company is open, active and in good standing in whichever state you did the formation in and we check to see if you have any all asset lien/UCC Filings on your company. We then send you our one year agreement to digitally sign, once we have reviewed together. After the agreement has been signed, you will be sent an email to request some paperwork that we will need before submitting your file to our in-house underwriter for review. Within 48 hours, you will be assigned an account rep, he/she will reach out to you to make an introduction, start the verifications of the invoices and send our a one-time notice of assignment to the debtors. Once the verifications are completed your file goes back to the underwriter for the final approval.
Typically, it takes about one week from the day you submit your paperwork to receive your first funding. We cannot submit your file to an underwriter for an approval until we receive the signed agreement and the support documents. After you account is setup, typically fundings are within 24 hours of you sending us invoices to purchase (as long as the verification is completed by your customers.
See the below chart on the invoice factoring flow process works
Invoice Factoring Flow Process
1. Create an Invoice
2. Send us a copy of the invoice that you are look
3. We verify the invoice for validity
4. We advance you up to 90% of the face-invoice amount,
5. We pay you and your customer will pay us directly
6. We send you back the balance in your reserve, less
7. Repeat step one
No, we do not! We are a traditional factoring company, we only charge a factoring fee. There are more and more alternative factoring companies out there that assume the practice of charging both a factoring fee and an APR on the money they give you. If your customer pays their invoice in 60 days, you will pay the APR for 60 days as well on top of the factoring fee. Many of our competitors bury the APR fee in their agreement, you might not even know until it's too late. It is a good idea to shop around and if you do, the number one question you should ask is...Do you charge an APR and a Factoring Fee? If they say yes, you should say no.
Business financing comes in many shapes and forms, what works for one company might not be right for another. Smart business owners want to know about all of their options before choosing the correct financial vehicle that will take their business to the next level. Is invoice factoring right for you and your business? You decide.