No. We are buying an asset from you, which is the invoice, at a discount. There is no principal, no amortization, no monthly payment, and nothing appears on your balance sheet as debt in the way a term loan would. That said, how a factoring facility gets characterized is a legal and accounting question that depends on the specific structure, so talk to your CPA about how to present it in your financials.

This is the number one fear and it is mostly unfounded. Large and mid sized companies receive assignment notices routinely and their accounts payable systems are built to process them. Factoring is standard working capital practice in wholesale, manufacturing, staffing and commercial services. What actually damages the relationship is not the notice, it is a factor who handles their AP department badly. That is a service problem, not a structural one, and it is the part we care most about getting right.

Setup normally runs three to seven business days depending on how fast documents come back and whether there is an existing lien to clear. After you are set up, funding is typically one business day from an approved schedule, and often same day if your schedule is in before the daily cutoff, currently 2:00pm Eastern.

Advances go up to 90 percent. Fees start at 2.5 percent of face value for the first 30 days and add roughly 1 percent for each additional 15 days, so on that schedule an invoice collected on day 38 costs 3.5 percent and one collected on day 75 costs 5.5 percent. Your advance rate and your fee tiers are set per deal and appear in your term sheet before you sign. Wire and ACH fees are separate line items and are disclosed in the fee schedule attached to your agreement. There is a full worked example on the How It Works page.

Because that is the convention in commercial factoring and because it is simpler to verify. We are not going to pretend it produces a lower number than it does. If you want to compare us to a line of credit on an apples to apples basis, take the fee, divide it by the advance, and annualize it. We will do that calculation with you on a call and we will not flinch at the answer.

No. You choose which invoices to submit and we choose which ones to buy. Neither side is obligated on any particular invoice. What we do ask is that once a customer is set up on notification, all of that customer’s invoices come through us, because split remittance instructions to the same AP department is how payments get misdirected.

We are a recourse factor, so once the recourse period runs out, typically at 90 days, you repurchase the invoice or we charge it back against your reserve or against future advances. Before that happens we work the collection, we escalate through a documented letter and call sequence, and we tell you what we are doing at every step. You will never be surprised by a chargeback.

The collection clock pauses and the dispute process opens. We need documentation from you, we contact the customer to understand what they are claiming, and we work toward resolution. A dispute is a recourse event under the agreement, which means an invoice with a live dispute can come back to you, but in practice most disputes get resolved and the invoice gets paid.

It is a public notice filed with your state that records our interest in your accounts receivable. Every factor and every asset based lender files one. It does not affect your personal credit and it is not a lien on your house. It does mean another lender searching your file will see it, which is exactly the point, because it stops somebody else from buying the same invoices out from under us.

Sometimes, and it depends entirely on what the bank’s lien covers. If their blanket lien includes accounts receivable, we need them to either subordinate their interest in the receivables or carve accounts out of their collateral. Banks do this regularly and it usually takes two to four weeks. We have a template intercreditor agreement ready to send them.

Usually not, and we will be blunt about why. Most MCAs take a lien on all receivables and debit your operating account daily, which conflicts directly with a factoring facility and with our ability to get paid. If you have an MCA the honest first step is a plan to retire it. We will tell you if we can work around it and most of the time the answer is no.

We require a validity guaranty from each owner of 20 percent or more, which is not the same thing as a full personal guaranty. A validity guaranty says you personally stand behind the invoices being real, delivered, undisputed and not already sold to somebody else. It does not make you personally liable for your customer’s failure to pay. Whether a full guaranty is required depends on the deal and we will tell you upfront.

There is a minimum monthly volume and an initial term, and both are set per deal and stated in your term sheet before you sign anything. If a factor will not show you the minimum, the early termination fee and the notice period in writing before you commit, walk away from that factor.

We do not fund medical receivables billed to insurers, consumer receivables, invoices for work not yet performed, and sales between related companies. Construction we do fund, with one limit: we advance against the portion of a progress billing that is currently due and approved, not against the retainage held back until closeout, and not where payment to you is conditioned on the general contractor being paid first. We are also cautious with government receivables, which are fundable but require a separate assignment process under federal law.

Case by case, and generally only with credit insurance or a letter of credit backing it. Collection leverage across borders is limited and we are not going to price as if it is not.

It happens, especially in the first month. You hold that payment in trust for us and forward it, and there is a fee for repeated misdirection because it creates real work and real risk. The practical fix is to put the assignment legend on every invoice and to confirm remittance instructions directly with the AP contact during setup.

You give notice under the term in your agreement, we fund your last schedule, and we hold a reserve until the outstanding invoices are collected or the recourse window closes. Then we release the balance, file a UCC-3 termination, and send written rescissions of the assignment notices to your customers so they go back to paying you directly. That whole tail typically runs 60 to 120 days after your last funding, which is normal and is worth asking every factor about before you sign.

If you want the lowest rate and you have the volume and the financials to command it, use a big one. Genuinely. Where we win is on the deals that do not fit a credit box, on speed of decision, and on the fact that you can get the person who made the decision on the phone. That matters most when something goes wrong, and eventually something goes wrong.