Frequently Asked Questions About Factoring
Factoring (Accounts Receivable Financing) is a widely used and viable no-loan financing solution for all types of businesses that extend credit terms to their customers. Here are some common questions our customers ask.
How can I contact Charter Capital to get more information about Factoring my invoices?
Simply call us toll free at (877) 960- 1818 or
How is accounts receivable factoring different than a loan from a
bank? When making an accounts receivable factoring decision, we
will focus on the creditworthiness of your customers while banks will
focus on your company’s financial history and
Factoring is not a loan and will not show
up as debt
on your company’s balance sheet. We can make a quick factoring decision,
while banks may take weeks—even months—to approve a loan.
Will my company be eligible for accounts receivable factoring if it
has a bank loan or line of credit? If a bank has a lien on
your company’s accounts receivable, you should let us know right away.
We will ask the bank to subordinate that lien. Some banks will
accommodate the request and others may decline depending on your
circumstances. Our number one referrals come from loan officers willing
to help out the client in cash flow needs. They are very familiar with
this kind of interim financing. The other alternative is to pay off the
loan if there is plenty of receivables to leverage the buy out.
How do I apply for a factoring line from Charter Capital?
Applying for a Charter Capital FactorLine is a quick and easy process!
The simplest way is to apply online by
Always feel free to call us at one of our local
office numbers or call us toll free, at (877) 960- 1818 and an account executive
will assist you today.
What types of industries does Charter Capital factor?
Charter Capital works with various industries and we have a diverse
client base. Some industries that we provide factoring services for are:
machine shops, and
us today, toll free, at (877) 960- 1818 and see if we can help you too!
Will you do business with a start-up company? YES!
Charter Capital provides accounts receivable financing based primarily
on the financial condition of our client's account debtors (your
customers), rather than upon the financial condition of the client
itself. By providing factoring services on this basis, we can provide
funds to our clients resulting in regular and predictable cash flows.
What if I have a prior bankruptcy or poor credit? We can
still help you. Our underwriting decision is based upon the credit
strength of your customer accounts and the integrity of your billing
process. Relatively little concern is given to your credit or your
company's financial strength.
What will it cost me to factor my invoices? In most
cases, your cost will be less than it would cost you to offer a discount
to your customer for early pay. Depending on various factors, our fees
can start as low as 1.5 % to 3.0%! Call us today, toll free, at (877) 960-1818 for a
no-obligation customized quote!
Once the facility is established, what is the turnaround time on
getting funds? Once established, advances can be made as
frequently as desired by the client and on the same day the client
submits its schedule of invoices.
Are we obligated to factor all of the accounts? No. You
are not obligated to sell any minimum volume of invoices.
Can you assist me in checking the creditworthiness of my customer
accounts? By collecting information from a variety of credit
reporting services and private databases, we unobtrusively review the
credit strength of our Client's customer accounts and regularly inform
you of any potential conflicts.
Can I still collect the accounts or will my customer accounts be
subject to aggressive third party collection efforts by Charter Capital?
Yes, you can continue to participate in the collection process. In fact,
Charter Capital's clients are encouraged to participate in the
collection process in the interest of preserving continuity with their
customer relationships. As a financial incentive, the Client is rebated
a part of the discount fee based upon a schedule of declining days
Is Charter Capital a broker? No. Unlike most "factors"
advertising on the web, we are not brokers. We are direct providers of
funds, so we can give you quick and accurate answers.
Will Charter Capital work with brokers? Yes, Brokers
like to refer deals to Charter Capital because they know that Charter
Capital will treat their clients with the respect and professionalism
that they deserve. Brokers also like Charter's strong reputation for
providing quick answers. To become a Charter Capital broker (or to
a deal to Charter Capital) call us, toll free, at
(877) 960 - 1818 or
Where are you located? Charter Capital Headquarters are
in Houston Texas. However, we do business with growing companies
all over the United States. Major markets include: Dallas, TX; San
Antonio, TX; Austin, TX; Atlanta, GA; Albuquerque, NM; Phoenix, AZ;
Nashville, TN; Indianapolis, IN; Oklahoma City, OK. If you are in Houston and wish to visit us
in person, feel free to
click here for directions to Charter Capital.
What information will you need from my company to begin the
accounts receivable factoring process?
A short application, your
company’s most recent accounts receivable and accounts payable aging
reports, Articles of Incorporation or d/b/a/ filing, a master customer
list and a sample invoice.
Which customers would be good candidates for accounts receivable
factoring? Usually 80% of your business comes from 20% of your
customers and these would be the most likely to factor, however, we will
factor 100% of your customer base so long as they are credit worthy. In
order to approve your customer base, we will need their names,
addresses, phone numbers and the amounts of credit desired for each
client. This will save you time when submitting invoices to us.
Can you purchase only a portion of my company’s invoices or one
customer? Yes, so long as it is not a one time deal.
How long does it take
to get approved? We can typically approve you within 24 hours of
receipt of your application and
How long does it take to
get funded? After you have been approved and all documentation
is complete, we typically offer same-day funding.
What should I do if my customer mistakenly sends the payment to my
company? The answer to this question will apply to any factor you
deal with. This is very common especially with the first initial
funding. If this occurs, the check must be sent to us immediately. Your
company should never deposit invoice checks that were already purchased
by a factor. Your customer will be notified to pay us directly in the
How can I be certain that your company will treat my customers
well? The last thing we want is for you to lose a customer. We are
not a collection agency. We will never harass your customers for money.
Maintaining your customers’ goodwill and confidence are of utmost
importance to us!