A/R Finance & Factoring Terms GLossary

What isProcess of Factoring

The Process of Factoring is:

  1. Complete the factoring application and submit with the required documents (A/R aging, sample invoices, Vendor Agreements & Purchase Orders)
  2. Receive a written proposal outlining the terms and rates from the Factoring company
  3. Sign the proposal and the Factor finishes final due diligence, sends you the Factoring Closing documents for you to sign and begins verifying your invoices
  4. After verification, monies are wired to you
  5. You continue to send the factor new invoices every day/week and funding’s continue
  6. When your customers begin to make payments, you receive your balance owed (earned reserve) minus a factoring fee



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OTHER TERMS BEGINNING WITH "P"

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