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Frequently Asked Questions About Our
Services
Q.
What minimum credit score must I have for financing through
Sacramento Factors.com?
A.
For factoring, a client's credit is generally of a secondary nature.
Factors are much more focused on the creditworthiness of your customers.
Asset-based lending will require a certain level of credit history.
Q.
How long is the turnaround time for first funding after I complete an
application?
A.
Typically, a factoring relationship can be established in about a week
to ten days. Asset-based lending and purchase order finance takes
a bit longer.
Q.
If I elect to factor my receivables, must I factor every customer?
A.
Generally not. But if you elect to factor a certain customer, all
invoices of that customer must be factored. Factors will also
require a certain "minimum level" of factoring each month in most cases.
Q.
Will I be required to "personally guarantee" the loan?
A.
In most asset-based loans, personal guarantees are required.
Factoring, however, is typically not a loan. The requirement for
personal guarantees varies from factor to factor.
Q.
I am starting a brand new business. Can I access factoring to help
finance my invoices?
A.
Absolutely. In fact, factoring is one of the few sources of
financing available in such circumstances. With a factoring relationship
established, you can immediately focus on landing "large,
creditworthy" customers and rapidly build your business and income.
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ESTABLISHING a FACTORING RELATIONSHIP
Though once entrenched in the
garment and textile industries, factors now provide financing for
thousands of businesses and leave almost no industry untouched.
Creating a relationship is relatively easy however several conditions
must be present.
• Senior Lien on Accounts
Factors must be able to perfect a senior lien on your
accounts receivable. If you have an existing bank line of credit,
the bank cannot have your invoices as collateral.
• IRS Tax Liens
Generally, you cannot have a sizable tax lien outstanding. In
some instances, however, a business owner will establish a factoring
relationship to actually help pay off a tax lien. If you have
questions regarding such a lien,
contact our offices for additional
information.
• Goods Delivered or
Services Performed
Invoices submitted for factoring must be verifiable and for services
that have already been performed or goods that have already been
delivered.
• B2B Business to Business
Factoring is a method of financing for your business-to-business
sales only. |
