Factoring is a financial transaction whereby a business sell its accounts receivable (invoices) to a third party,called an acounts receivable factor,in exchange for immediate money with which to finance continued business.Link to Wikipedia page on factoring: http://en.wikipedia.org/wiki/Factoring_(finance).
Factoring can help your business by increasing cash flow by providing payment to your company today for your current invoices instead of waiting 30, 60 or 90 days for payments from your customers
As a form of small business finance, factoring differs from a bank loan in three main ways. First, through invoice factoring the emphasis is on the value of the accounts receivable (a financial asset), not your company’s credit worthiness. Secondly, factoring of a particular invoice may not be a loan, it is the purchase of a financial asset (the receivable). Finally, a bank loan involves two parties whereas factoring involves three. Because a factor focuses on your accounts receivable we provide “bad credit small business loans” meaning that you can still factor your receivables even if your company has bad credit.
FASTARFUNDING differs from other small business lending sources in that it was founded to take advantage of technology that has not been widely adopted by the factoring, asset based lending, small business finance and accounts receivable finance industries. This benefits FASTARFUNDING’s clients by eliminating the paperwork traditionally associated with a factor and making a new small business loan available more quickly than the competition. You will never be asked to complete and/or sign a paper document and mail it to FASTARFUNDING.
FASTARFUNDING is a direct factoring services provider. FASTARFUNDING was founded to provide a stable funding source for small business loans in a very unstable financial market. FASTARFUNDING is owned and managed by private investors with significant experience in the factoring and asset based lending industry. FASTARFUNDING is not dependent on temporary bank loans of its own or other complicated “Wall Street” schemes like some other factoring companies.
FASTARFUNDING funds all types of businesses with accounts receivable factoring. Distributors, manufacturers and all types of service companies may qualify for our small business loan and invoice factoring services.
Your accounts receivable factoring advance rate is determined based on a combination of variables including the financial strength of your accounts receivable you choose to factor and the industry you serve.
With our factoring company the cost is largely dependent on the volume of accounts receivable that you choose to factor with FASTARFUNDING and the time it takes your customers to pay the invoices that FASTARFUNDING purchases.
No. FASTARFUNDING does not charge any type of set up fee for our small business loans and factoring. Submitting an application is completely FREE. You don’t pay anything until you factor an invoice.
No. Our factoring company does not require its customers to sign any type of long term contract. You only factor the invoices you choose.
Your company will be given access to FASTARFUNDING’s web based accounts receivable management software which will allow you to check on the status of your invoice factoring.
No. FASTARFUNDING small business loans are based on the strength of your customers not by the criteria used to establish a traditional small business loan or other small business finance sources.
Unlike some other factors and asset based lenders FASTARFUNDING’s clients maintain their relationship with their customers as the primary contact regarding all accounts receivable invoicing and collections.
Yes. All invoices will be labeled as sold and payable to FASTARFUNDING as part of our small business factoring program.
Using FASTARFUNDING’s innovative technology platform, all your transactions will be processed electronically over the internet allowing an online, fast small business loan. You will be able to use FASTARFUNDING’s FREE accounts receivable management software to create your invoices and submit them to your customers and receive expedited payments directlyfunding from FASTARFUNDING.
Given the current lack of funding available for small business loans, FASTARFUNDING focuses on providing accounts receivable financing to small businesses that range from startups to more than $1,000,000 a month in sales.
Absolutely. Unlike other factoring companies and asset based loan sources, our innovative invoice factoring technology platform has completely eliminated the need for ALL paper documents. This allows us to provide small business start up loans and accounts receivable financing to mature businesses.
No. Unlike some other asset based lenders and invoice factoring companies you choose which accounts receivable you want to factor with FASTARFUNDING. We provide loans for small business based on the accounts receivable that you choose to factor.
We built our system around this issue. As you can imagine, there are criminals that make a living selling fraudulent receivables to factors. In order to prevent this, and to ensure that our clients receivables are collected as quickly as possible (reducing their costs), we verify every factored invoice electronically with our client's customers. This is a simple process that allows your customers to give their input on the details of the receivables that we are contemplating factoring. We have designed this electronic verification process to be quick and to make sure we are able to fund our clients as soon as possible. In addition to our own proprietary system, we are also a member of the industry group Factors Against Fraud, www.factorsagainstfraud.org This allows us to keep abreast of new criminal techniques to defraud factors and methods to help us prosecute these criminals to the full extent of the law.
