FAQ

Frequently Asked Questions

Why should I use factoring?

The main benefit of receivables factoring is the immediate increase in working capital which, among other things, can fund expansion and growth. Due to the fact that receivables factoring is contingent upon your customer's creditworthiness, it does not matter if your company's credit is poor or not yet established.


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How does Facteon receive payment?

The same way you do. We deliver your invoice and Authorization Letter to your client once services have been rendered or your product has been delivered.


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Does my client need to pay you any differently than they would pay me?

By working with Facteon, your payment terms can stay the same as they are today. You don't need to pay any faster and the name on the check stays the same.


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What do I tell my client?

Facteon Representatives are experienced with a proactive policy that teaches you how to notify clients of your relationship with Facteon.


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How much do I get paid?

A typical initial payment up to 80% of the invoice amount is wired to your bank account. When your client pays your invoice, you will receive the remaining balance less our fees.


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What if I don’t want to give you my personal information yet?

We collect personal information at your discretion so we can provide you with a better Web experience and an expedited process. The more we know about you, and the more complete the information you provide, the faster we can deliver. We never share your personal information with anyone.


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How do I know when my client has paid?

Once your client has paid an invoice, you will see a settlement detail and the final amount due to you from Facteon.


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For what types of receivables will Facteon pay me cash?

Facteon Representatives are experienced with a proactive policy that teaches you how to notify clients of your relationship with Facteon.


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We've discovered via years of experience that a proactive approach with clients is best. Your Facteon Representative can be a valuable asset in this process. Here are a few of the topics you will want to cover first.
1. Working with Facteon helps me fuel my Company's growth.

Selling invoices (receivables) to a third party like Facteon has been a standard business practice for hundreds of years. Our business is not in trouble. In fact, it's just the opposite: it is growing fast and Facteon accelerates my cash flow to fuel that growth.


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2. Your payment terms will not change.

By working with Facteon, your payment terms can stay the same as they are today. You don't need to pay any faster and the name on the check stays the same.


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3. Your day to day contact with our Company stays the same.

I will continue to be the person with whom you discuss project related issues.


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4. Working with Facteon is easy.

You will receive an original invoice and Authorization Letter with each invoice that involves Facteon. Instead of mailing a check to our business, you simply redirect payment to Facteon. Facteon should be notified if payment terms or amounts are going to change.


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5. Facteon is not a collection agency.

Even though you will be sending payment to Facteon, they are not a collection agency and they will not be calling you to collect payment.


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1. What exactly is factoring?

Factoring is the purchase of your accounts receivable (invoices) in order to provide you with the cash flow you need when you need it. Factoring is a widely accepted business practice used by large, mid-sized, and small companies.

In most cases, we can have you the cash you need in 48 hours. Once you've established your account, the process takes just 24 hours.

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2. How does Facteon's service work?

Visit our Test Drive for an in depth explanation of our process.

Here's how it works. You perform a service or deliver a product and you are ready to invoice your client, the amount is $25,000 (it could be as high as $100,000). Fax a copy of the invoice to Facteon so we can begin working for you right away, then overnight us the original.


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3. Do I need to provide Facteon with financial statements or an audit of my books?

No, we never ask you for financial statements or require a company audit. The only information we need to get started is contained in our Startup Checklist.

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4. Do I need to sign a contract?

There are no contracts with Facteon. We can provide you cash for one invoice or cash for all of your invoices. Once you create your Facteon account you can use it as much or as little as you'd like. The bottom line is that you're in control.


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5. For what types of receivables will Facteon pay me cash?

Any type of receivable for which a service has already been rendered or a product has been delivered. There are just a couple of exceptions that your Facteon representative will go over with you.


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6. How much cash will you give me for an invoice?

We pay you 70%-80% of the invoice amount right away. When we receive payment for the invoice, we send you the remaining 20%-30% less Facteon's service fee. View the Facteon Test Drive to learn more and take a look at our rates table.


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7. What will my clients think?

Selling your receivables to Facteon only changes the address to which your clients remit payment. Your clients don't need to pay faster, and the name on the check (your business) stays the same.


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8. I have clients all over the U.S. Are there any restrictions?

No. We can work with any business or government agency in the United States.


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9. How does Facteon receive payment?

The same way you do. We deliver your invoice and Authorization Letter to your client once services have been rendered or your product has been delivered. Take the Facteon Test Drive to learn more.


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10. What if my client does not pay?

Facteon does not require a personal guaranty of collection. If your client's business goes bankrupt and payment is not remitted, Facteon assumes the loss of funds that we advanced to you. If payment is not remitted due to a dispute with you, we will work with you to reclaim funds.


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