7 Reasons Why Factoring Might Be Right For You
We know there are other financing options out there but before you decide which option is best for you, you need to know the costs, time frame and qualification requirements first.
When it comes to factoring, it’s cut and dry.
To qualify to factor with Alliance One, you need:
- Active Corporation that is in Good Standing – If your corporation has been around for many years or as little as a day, you can still factor with us.
- You need to have more than one customers to factor
- You will need to sell us one invoice every 60 days
- You cannot have any all asset liens on your company i.e. bank loans or federal/state tax liens (against your company)
- Your personal credit is a non-factor. If you have great credit or less than great credit, this does not affect your rate nor will it stop you from qualifying.
- When factoring invoices with us, we pay your company and your customers will pay us directly. Your customers must be willing to pay a third party.
- We establish a line of credit on your customers, for the amount that we will be purchasing from you. Your customers need to be creditworthy for us to open this credit line. In the event that they are not creditworthy, we are still able to purchase invoices to them, but a cap will have to be set.
Setting up your company to factor is simple too. You complete our pre-application and then we send you out our agreement to review and to sign. Once the agreement has been executed, you supply us with some simple documents; we then submit the file to the underwriting for approval. The underwriting process can take up to 48 hours. After your file is approved and you will be assigned a designated account rep that will verify the invoices and assist you with your funding/s. After the verification, the file goes back to the underwriter for the final approval. Most new accounts are setup and ready to fund within five days. Take a look at our fee structure, you decided on the program that is best for your company.