Categories: Business Owner Highlights

fastARfunding/ Factoring Help – A Simple Guide to Begin Invoice Factoring

FastARfunding is being high-lighted this week for being the online leader in accounts receivable factoring. The company takes pride in their eco-friendly, paperless methods as well as their reputable speed of providing funds in as little as 48 hours. We welcome these accounts-receivable-factoring-big-kids-on-the-block to share some words of wisdom when completing an online factoring application:

So you’ve heard of invoice factoring and want to increase your business cash flow by unlocking some of the value you have in your accounts receivable. You need a quick and reliable partner for future access to cash in order to invest in your business and help it to grow. You are thinking of filling out an application with an online factoring company. Before you jump in, here are a few items you should have at your fingertips as you begin the application and “underwriting” process with a factoring company:

1) All of your company’s formation documents including LLC and/or articles of incorporation. If you are currently operating as a sole proprietor, you can easily and inexpensively establish a new company for yourself using mycorporation.com. All factoring companies will initially do a corporate or LLC search in the respective State where you operate in order to seek confirmation of your “company’s good standing”.

2) Basic information about the owners of your company, how long you’ve been in business and gross annual sales.

3) Information about your top 5 customers (that you intend on factoring) including the amount of sales you complete with each of them on a monthly basis and the terms you extend to each customer (e.g. net 30 or net 60).

When you are selecting a factoring firm on the Internet, be sure to check if the firm is registered with the Better Business Bureau and they use a secure internet website for the collection of data when you fill out the initial application (typically the address bar will turn to a green color and you’ll see https://secure in front of the web address). While there are many companies that advertise a free application process and other “goodies” like no monthly minimums, extremely low factoring fees (e.g. less than 1%), and no long term contracts, please be cautious. No finance firm can offer all these items to all clients or they would not make enough money themselves to survive! So, take the time to call the factoring company directly before you fill out an application, and ask one of their representatives some basic questions to verify if they will really be able to deliver what they say. Most factoring companies will gladly take your phone call and walk you through a few basic questions in order to make sure you’re a good potential applicant for them. If you are not a good fit, they may refer you to another factor that specializes in your particular industry.

Fast A/R Funding offers additional detailed information about invoice factoring and you can get that information for FREE by clicking HERE.

Interested in becoming an affiliate with MyCorporation or finding out more about fastARfunding? Contact Cindi Sokoloff, Affiliate Manager at MyCorporation at (818) 746-2264 ext 320.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.