Invoice Factoring Account Setup

When setting up a new invoice factoring account, we often get asked the same question, “how quickly can I get funded?”  While many seem to believe the process is slow, most factoring companies can move very quickly.  The setup speed is contingent upon the factoring company acquiring all the information necessary to get the job done in a timely fashion.

In order to get the procedure started and moving along, it is recommended you get all your records organized before starting the application process.  Each factoring company has their own list of documents, but most will require the following:

• Application
• Invoice Aging
• Certificate of Incorporation or LLC Operating Agreement
• List of customers you desire to factor
• Latest IRS 941 (if you have employees)
• Copy of drivers license from all signing parties

Delays in the setup can be caused by circumstances outside your control.  Underwriting concerns will cause the factoring company to do further due diligence and take a little extra time. 

The best advice when establishing an account with a factoring company is to get your information and documents organized and stay in contact with your business development representative.

This entry was posted on Wednesday, August 10th, 2011 at 3:38 pm and is filed under Blog. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.