Generally, the following steps occur during the initial factoring transaction with a new client:

• The prospective client completes our CREDIT APPLICATION and sends it to American Factors Corporation, with a copy of its accounts receivable aging report.
• American Factors Corporation quotes the terms of the transaction.
• After accepting the terms, the prospective client completes a formal CREDIT APPLICATION and sends it to American Factors Corporation with a normal application fee to cover the cost of our credit investigations and legal documentation.
• Upon receipt of the Credit Application and fee, American Factors Corporation prepares a PURCHASE and SALE AGREEMENT (usually within 48 hours), searches for liens and analyzes the credit of the prospective client's customers and the business owner's personal credit.
• Client executes the Purchase and Sale Agreement and sends it to American Factors Corporation with the first assignment and notification letters.
• The first assignment generally takes between 24 to 72 hours to fund. Thereafter, all future assignments are normally funded within 24 hours of assigning invoices.
• American Factors Corporation purchases the accounts receivable and advances the client up to 90% of the face value of the invoices.
• When American Factors Corporation collects the payment of invoices, the balance of the invoice (reserve), less the factoring fee, is remitted back to the client the following week.