Frequently Asked Factoring Questions

Is accounts receivable financing a bank loan?

No. Your accounts receivables are assets that AmeriFactors purchases from you. A loan will be a debt that reports to the credit bureau and factoring does not.

Is factoring new?

Accounts receivable financing, also called factoring, is one of the oldest forms of financing in the world. Factoring has been around in one form or another for more than 4,000 years. Until the mid-1980s, most people thought accounts receivable financing was only used in the textile and garment industries. Today, accounts receivable financing is a widely used and viable business solution.

How is accounts receivable financing from AmeriFactors different than business loans from a bank?

When making a funding decision, AmeriFactors will focus on the creditworthiness of your customers while banks will focus on your company’s financial history.

Will my company be eligible for accounts receivable financing if it has a bank loan or line of credit?

Yes. Banks have been known to work with us to allow factoring.

My company owes back taxes. Can I still apply for accounts receivable financing?

Yes. Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can discuss the payoff of your back taxes or lien subordination with the IRS.

I have had a past bankruptcy, is accounts receivable financing still an option?

Yes. AmeriFactors will still consider your application even if you have credit problems or a past bankruptcy.

How long does it take to receive the first invoice funding?

One business day.

Frequently Asked Asset-Based Loans Questions

What is an asset-based loan?

Asset-based loans, or ABL’s, are a form of secured lending that is based principally on the quality, value, and adequacy of the collateral that an issuer pledges. It has a variety of applications and can benefit companies both in the middle market as well as those that are larger.

Frequently Asked Business Cash Advance Questions

What is a Business Cash Advance?

A Business Cash Advance is a non-secured business advance requiring a daily fixed repayment plan for up to eight months. There are no restrictions on how the monies are utilized.

Are there any minimal requirements?

Yes, your company needs to have been in business for at least six months and have an average monthly deposit history of $10,000 per month.

What is a common use for the funds?

The uses are varied and can include: working capital, business expansion, inventory purchase, marketing, remodeling, and equipment purchase.

Ready to start? Fill out our FREE quote form and we’ll start the process of getting you funded immediately. Once submitted, one of our Business Development Officers will call you shortly.

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Terms and Conditions

Applicant understands that AmeriFactors intends to rely on the foregoing information in determining whether to enter into a factoring agreement, and applicant authorizes AmeriFactors to do so. Applicant also understands that the foregoing information may be incorporated by reference into an agreement between Applicant and AmeriFactors and any failure of Applicant to disclose truly, completely and correctly the information requested may constitute a breach of any such agreement. Applicant understands further that AmeriFactors has not, by requesting the completion of or accepting this application form, committed to make or implied an intention or commitment to enter into a factoring agreement with Applicant. Applicant acknowledges that he has retained a copy of this application form. Applicant authorizes AmeriFactors (officer, employee, or other representative thereof) to visit and inspect any properties of Applicant; to discuss Applicant and its affairs, finances, and accounts with, and he advised as to the same by Applicant's officers, employees, lenders, attorneys, customers, suppliers, and independent public accountant; all to such reasonable extent as AmeriFactors may desire, and all on the condition that AmeriFactors seeks such information in good faith in connection with The Applicantants factoring application. Applicant hereby authorizes AmeriFactors to immediately file a financing statement covering all collateral of Applicant. The financing statement will become effective when (and if) Applicant and AmeriFactors enter into a factoring agreement. In the event AmeriFactors and Applicant fail to enter into a factoring agreement, AmeriFactors will file a termination statement.

Applicant hereby authorizes its suppliers, customers, lenders, accountants, principals, officers and attorneys to provide AmeriFactors (and any officer, employee or representative thereof) such information about Applicant and its affairs, finances, and accounts as AmeriFactors may request. Applicant also authorizes each such person and firm to accept a copy of this Authorization as if it were an original. The individual submitting this application who is either an officer, director, partner, member, owner of a sole proprietorship or shareholder of the Applicant, recognizing that his individual credit history may be a factor in the evaluation of the credit history of the Applicant, hereby consents to and authorizes the use of a consumer credit report by AmeriFactors from time to time as may be needed in the credit evaluation.

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