Will Invoice Factoring will give you cash-flow to run your business?

Alliance One is a premier invoice financing company. We have over 50 Years of experience in the Financing Businesses in 49 States (No CA).

What is invoice factoring and is it right for your business?

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 and or service, after the products have been delivered and or the services have been rendered, you invoice your customers and then wait to get paid.

When you sell your open invoices to a factoring company, you no longer have to wait 30, 60 or 90 days for your customers to pay. You send us a copy of the invoice; we verify the validity for each invoice and 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. This money remains in your account until your customer makes their payment directly to our company. Once we have been 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 provide your company with cashflow. You pick and choose the invoices you want to sell, from the customers of your choice. You are not required to sell us all your invoices and you do not have to factor all 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 cashflow that you need to run the business. 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.

How to Choose the Right Invoice Factoring Company

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 you, the factoring fee. All factoring companies charge a factoring fee but most also charge an APR, on top of their factoring fee. Alliance One DOES NOT charge you this double fee, we do not have any junk fees either.

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. You should also verify how long a factoring company has been in business. If you are relying on a factoring company to fund your business, you need to make sure they have staying power. It’s also important for you to know if you are working with a broker or a direct lender. Direct lenders like Alliance One have in-house underwriters, we can create a program that fits your needs. 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 do not want to pay junk fees, if you want to work with a direct lender and if you are looking to work with seasoned professionals and be harmonious with a reputable company, Alliance One wants to work with you. We will be your financial arm and we will help you grow your business.

What is the Process to get Started?

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 out 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 approval until we receive the signed agreement and the support documents. After your account is setup, typically fundings are within 24 hours of you sending us invoices to purchase (if 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
to sell

3. We verify the invoice for validity

4. We advance you up to 90% of the face-invoice amount,
the other 10% will be held in your reserve account until
said invoice is paid

5. We pay you and your customer will pay us directly

6. We send you back the balance in your reserve, less
our factoring fee (typically between 2% and 3%)

7. Repeat step one

Do you charge an APR and a Factoring Fee?

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.