Required Documents For Setting Up Invoice Factoring Services
The Aging Report
The main document required for an invoice factoring company to review for approval of a business applying for factoring services is the invoice aging report.
What Is An Aging Report?
An invoice aging report is an accounting document that lists the outstanding invoices a business has along with the balances on these invoices and the names of the customers owing this business money.
The factoring company uses this list to evaluate what kind of customers/clients the applicant deals with and how long it typically takes for clients to pay.
The invoice aging report might be requested to be attached to an initial factoring application.
Other Documents
The factoring company will most likely issue for signing a typical terms and conditions agreement that spells out the conditions of the potential factoring arrangement such as fees and procedures.
Once the invoice factoring company decides to approve an application and offer a business the opportunity to set up a factoring account, a final factoring contract package will be sent out to the business for review and signing before invoices can finally start to be submitted for funding.
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