Evaluation For Invoice Factoring

The First Step To Setting Up A Factoring Services Account

Before you can begin setting up an account for receiving invoice factoring services from an accounts receivable factoring company, you may have to submit some preliminary background information about you and your business for the financing company to evaluate your business.

Information List

Below is some of the information you might be expected to supply.

1. Business location.

2. Type of business.

Some invoice factoring companies only deal with certain types of businesses.  However, they might still be able to help by referring you to another factoring company that does deal with your specific business type.

3. Average monthly sales.

Some invoice factoring companies might have minimum requirements regarding monthly sales.

4. Average monthly invoice size.

Some accounts receivable factoring companies might not factor (provide funding for) invoices under a certain size.

5. The number of clients/customers with whom you are currently working.

6. A current list of  clients/customers that owe your company money for outstanding invoices.

7. The terms of payment you normally offer to your clients/customers.

8. Any current liens on your business.

Once your potential accounts receivable factoring company reviews your information and deems it acceptable for the company to provide its invoice factoring services, the process of document gathering and review will begin along with the process of due diligence on the part of the invoice factoring company.

Related Articles:

What Is Invoice Factoring

Learn the basics of invoice factoring.

Invoice Factoring Setup Documents

See what documents will most likely be required to set up a factoring account.

Obtaining Invoice Factoring

See the steps involved with obtaining invoice factoring services.



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Invoice Factoring Evaluation