Frequently Asked Questions About Factoring

How does my business qualify for factoring?

We have a short application, which you can find at this web site. You can be approved the same day, however, most businesses take 2 to 3 business days for the approval cycle. Apply Now for Factoring

How long does it take to fund?

Generally we will fund within 24 hours from the time the proper documentation has been received by our offices.

When will you factor my receivable?

When the scope of work can be clearly identified as being completed, you have delivered the goods or services and you have prepared your invoice.

What do you mean by non-recourse?

Non-recourse applies to the credit of your customer. PFC will guarantee your customers' credit. If your customer cannot pay because of credit, PFC is stuck with the bad debt.

Is it easier to qualify for factoring than traditional financing?

That depends on your product or service, but generally yes.

Will I need a secondary source of repayment?

In true factoring where a factor purchases an account receivable, there is no need for a secondary source of collateral. PFC will rely on the invoices purchased for repayment.

Does that mean I don't have to worry about history to service debt or even profitability?

To some degree this is true. PFC will work with a young company and often a start-up. In the earlier stage of development companies there is often limited profitability if any at all.

Why would a factor lend to a company that hasn't made a profit and can't show clearly that they will be able to in the near future?

A non-recourse factor does not lend money but provides an off balance sheet form of financing. PFC converts one asset to another never causing you to recognize a liability as an exchange for collateral. Therefore, PFC purchases receivables and does not expect you to pay us back and does not need the same assurances that are required with a loan.

Do you contact my customer and if so why?

Yes, we do. We rely on the customer to pay us back for the services or products you have delivered. We want to know if they are happy with what they received. We also want to let them know that they should pay us directly.

What will my customers reaction be once you have contacted them?

It is important to note that the quality of your product or services being rendered will dictate the response we get. Your customer will generally understand the need for reliable cash flow. Most of the time our interface with your customer is through accounts payable. This is generally an easy transition when we are asking accounts payable to send the payment to PFC.

What other services might I expect from PFC?

PFC will pre-screen your current and future customers' credit. We will approve, decline and/or set credit limits on your sale orders. We will also provide you with collection maintenance. We will want to know when your customer is paying the bill because we guarantee credit or invest in your accounts receivable. PFC has a computer system that will assist our credit department in tracking and monitoring your open accounts.

Do you have some customers that use you mainly because of the credit and collection services?

Most of our customers that use us long term stick around because we can be more cost effective than establishing and supporting a credit department. In addition to dependable cash flow, our customers have not been able to recruit a credit manager who will also guarantee their credit decisions. Yes, many customers have found that our services can be more important in the long run.

How do you charge for your services?

PFC assesses your needs coupled with the risk we take. Some of the considerations are: 1.) Total volume; 2.) Product and portfolio risk; 3.) Customer credit risk; 4.) Stability of customer base; 5.) Invoice size; 5.) Turnover or terms of sale. After reviewing your needs we will provide you with a custom proposal. Would you like one now? Click