invoice factoring faqs
Invoice Factoring
Frequently Asked Questions
  • How Does it Work?
  • Is it Right for Your Company?
  • Is Factoring a Loan?

Factoring FAQs

Invoice factoring exists to gap the time frame from the day you invoice to the time you get paid on your aging invoices.  It’s a cash flow management tool, which is available to most businesses that sell products or renders services, to other businesses.   Do you have any account receivables that you are waiting to be paid on?  If so, would it help your cash flow if we purchased your account receivables today and paid you on them tomorrow?  When you factor your invoices, you never have to wait for 30, 60 or 90 days to get paid, ever again.

Q: Why haven't I heard of Factoring and should I factor my Invoices?

A: Simply, factoring is the purchase of accounts receivable (your invoices) for immediate cash. It is an alternate way to obtain financing that provides billions of dollars to industry each year. You probably haven't heard of factoring because it is a financial tool used historically by big corporations to help meet their cash flow needs. We at Alliance One LLC, bring the value of this time-honored tool to small and mid-sized companies.


Q: Why should I sell my Account Receivables to Alliance One?

A: You need cash flow to run your business: whether it's to meet your financial obligations, to buy inventory, to invest in the growth of your business. Waiting 30, 60 or 90 days can put a tremendous burden on your business. Selling your accounts receivable to Alliance One Factoring Company, provides you with immediate cash that you can put towards your most critical business objectives. Sell us your aging account receivables and spend less time chasing money and more time making it!  We are a family owned factoring company, we have been open and servicing our customers for over 25 years.  We are a direct lender with in-house underwriting.


Q: Is Invoice factoring a loan?

A: No. Alliance One LLC is not a bank. We don't make loans. We purchase your accounts receivable for immediate cash. There's no interest involved. You pay a discount fee for our service. You sell us your aging account receivables today and we will fund you on them tomorrow.


Q: Which is better: getting a bank loan or using a factor?

A: Getting a loan from a bank is not always that easy, especially if you are a startup company or if you have credit issues. Banks often have strict lending requirements, long time frames to get you a loan and it's a painful process dealing with any bank. Even large, well-established businesses have complications obtaining a bank loan. Let's face it, if you were plush with cash, you would not need to factor your invoices and you would not need a bank loan.

Q: Which is better: getting merchant cash advance or using a factoring company?

A: Merchant cash advances (MCA) tend to put companies out of business.  They are short term loans with huge APR fees.  MCAs review your bank statements and give you a loan based on the amount of money you take in.  They automatically pull out of your account a sum of money every business day of the week, until you have paid this back in full with interest.  Factoring is not a loan, there is nothing to pay back.  You are selling your invoices at a discounted rate for immediate cash.  We purchase your invoice, send you the money and we wait for your customers to pay us directly.


Q: If you purchase my invoices, who bills my customers?

A: You can still invoice your customers or we can do it for you. You prepare your invoices as usual and forward them to us for immediate cash. We send the invoice to your customers.


Q: When do I get paid?

A: You send us an invoice, we send you cash - usually within 24 hours, after the verification process.


Q: How much does it cost me?

A: We look at a variety of things - your customers' creditworthiness, average payment cycles, the dollar amount and number of invoices you sell us, etc. - to determine your fee. Call us at 1.631-435-1000 to find out how factoring can pay for itself.


Q: Do I need to sell you all of my invoices?

A: No. Your cash flow needs should dictate your decision to sell us your invoices. Need cash, sell us an invoice. It's as simple as that.


Q: Do you have any minimum or maximum requirements?

A: No. We keep things simple. Call us at 631-435-1000 to discuss your particular needs.


Q: How do I get started?

A: Just complete our one-page application. If you prefer, you can call us at 631-435-1000 and apply by phone.

Alliance One LLC

Invoice Factoring \ Account Receivable Financing
For New and Established, Small and Mid-Size Businesses

Call Us: 631-435-1000



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