Invoice Factoring (Accounts Receivable Financing) is a widely used and viable non-loan business finance solution for all types of companies that extend credit terms to their customers. Most business owners usually have questions about how factoring works. Here are some common questions our customers ask.
- How is invoice factoring different than a loan from a bank?
- Will my company be eligible for invoice factoring if it has a bank loan or line of credit?
- How do I apply for a factoring line from Charter Capital?
- What types of industries does Charter Capital factor?
- Will you do business with a start-up company?
- What if I have a prior bankruptcy or poor credit?
- What will it cost me to factor my invoices?
- Once the factoring arrangement is established, what is the turnaround time on getting funds?
- Are we obligated to factor all of the accounts?
- Can you assist me in checking the creditworthiness of my customer accounts?
- Can I still collect the accounts or will my customer accounts be subject to aggressive third party collection efforts by Charter Capital?
- Is Charter Capital a factoring broker?
- Will Charter Capital work with factoring brokers?
- Where are you located?
- What information will you need from my company to begin the accounts receivable factoring process?
- Which customers would be good candidates for accounts receivable factoring?
- Can you purchase only a portion of my company’s invoices or one customer?
- How long does it take to get approved?
- How long does it take to get funded?
- What should I do if my customer mistakenly sends the payment to my company?
- How can I be certain that your company will treat my customers well?
How is invoice factoring different than a loan from a bank?
We will focus on the creditworthiness of your customers while banks and other traditional forms of business finance will focus on your company’s financial history and cash flow. Accounts Receivable 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 invoice 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. Many of our referrals come from loan officers willing to help out the client with 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. 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 types of companies for their business finance needs and we have a diverse client base. Some industries that we provide invoice factoring services for are: trucking, staffing, security firms, service companies, manufacturing, wholesale, distribution, consulting, machine shops, and oilfield services companies, but the list does not stop there. Call us today, toll free, at (877) 960-1818 to see if we can help you too!
Will you do business with a start-up company?
YES! Invoice factoring companies don’t always do this, but Charter Capital Does. We are able to do this because we focus primarily on the financial condition of our client’s customers, rather than 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%! 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?
Are we obligated to factor all of the accounts?
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 outstanding.
Is Charter Capital a broker?
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 refer a deal to Charter Capital) call us, toll free, at (877) 960-1818 or click here.
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?
Which customers would be good candidates for accounts receivable financing?
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?
How long does it take to get approved?
How long does it take to get funded?
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 future.
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!