Factoring, Accounts Receivable Financing, Growth Capital Funding

Q:	Who is American Factors Corporation?
A:	American Factors Corporation is an accounts receivable financing company, privately owned and operated with over 25 years of financing experience. Our management team knows and understands the needs of small and medium-sized businesses.
Q:	*What does American Factors Corporation do?*
A:	American Factors Corporation provides financing for small and medium-sized companies that need additional working capital. The financing provides your company a steady cash flow, which will enable you to grow and prosper.
Q:	*How does factoring work?*
A:	We purchase your accounts receivable, giving you cash in 24 hours or less. We provide credit checks on your current or potential customers. Our professional accounts receivable bookkeeping and collection services are part of our total financing program.
Q:	*What can Factoring do for me?*
A:	Factoring provides an immediate source of cash flow for your company. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and much more. Most importantly, factoring enables your company to GROW!
Q:	*Who needs Factoring?*
A:	Companies that are growing rapidly. Companies that may not qualify for bank financing. Companies that are young. Companies with tax problems. Companies without strong balance sheets. Companies in bankruptcy or have filed bankruptcy in the past.
Q:	*How do I know if my company qualifies for factoring*?
A:	If your company sells a product or provides a service to another business, American Factors Corporation has programs to fit your individual needs.
Q:	*How does factoring affect my relationship with my customers?*
A:	American Factors Corporation has a positive impact on your customer relations. We often eliminate potential disputes by confirming that goods and services have been received and rendered to the satisfaction of your customers. To ensure lasting relations, all contacts with your customers are handled in a very professional manner.
Q:	*Who is responsible for collections?*
A:	American Factors Corporation encourages you to participate in the collection process. Most companies, in order to reduce the cost typically associated with collections, elect to have us monitor and pursue collections independently.
Q:	*What type of receivable does your company buy?*
A:	Just about any valid receivable for a service performed or a product delivered and accepted.
Q:	*What if my company already has a bank loan or line of credit?*
A:	If a bank has a lien on your company's accounts receivable, we will ask the bank to subordinate that lien in favor of American Factors Corporation. Whether this is possible depends on the policy of the individual bank in question. Alternately, we may be able to arrange to pay down or pay out the loan from your funding.
Q:	*How do you determine your factoring fee?*
A:	Our fees are NOT based on the strength of your company, but rather on the quality of your accounts. Therefore, the cost fluctuates according to the credit worthiness and performance of your receivables. When compared to both the cost of maintaining receivables for 30 days or more and the administrative expenses associated with collections, factoring is a prudent business strategy.
Q:	*Is factoring a widely accepted financial practice?*
A:	Factoring is so widely recognized that nearly every retailer in the United States includes a blank on their purchase orders indicating whether the invoice is to be factored. Until recently, factoring was only available to companies with receivables totaling $20 million or more. Now, due to advances in technology, American Factors Corporation can serve the small business community without incurring high administrative expenses. Coupled with the increasingly stringent credit parameters of institutional lenders, factoring has become a preferred financial tool for the small and medium-sized business.
Q:	*What types of reports will your company provide me?*
A:	We provide you reports showing the status of each invoice we've purchased, e.g., which ones have been paid and when, which ones are still outstanding, the balance in your reserve account, etc.
Q:	*Do I have to jump through the same hoops as in bank financing?*
A:	No. All we need is a completed application and a detailed accounts receivable aging. Upon receipt of these two items, our factoring proposal will be in your hands immediately.