Frequently Asked Questions from our Customers
While some of the questions and answers below are general questions, we know every customer is unique. Call us and let us answer your specific questions, we’re OPEN 24hrs a day: 1-844-261-FUND.
Factoring is a financial transaction and a type of debtor finance in which a business (you) sells its accounts receivable (i.e. invoices) to a third party (Quickpay Funding, called a “Factor” or “Factoring Company”) at a discount to meet its present and immediate Cash needs. Factoring is the sale of receivables, whereas invoice discounting (“Assignment of Accounts Receivable” in American Accounting) is a borrowing that involves the use of the accounts receivable assets as collateral for a Loan. (Wikipedia, 2015)
Quickpay Funding will assign you an experienced Account Executive. To get you started, we will need a signed application, Copy of your ID/Drivers License, Insurance Certificate, Articles of Incorporation/Organization, and your W9. For the actual funding, we will ask for a copy of your invoice, rate sheet – purchase order – and signed bill of lading. You can fax this information to us (858-264-6999) or scan and email it to us at firstname.lastname@example.org .
Once your dedicated Account Executive receives your documents, your application will be reviewed and your paperwork that you have submitted will be validated by our Underwriting Team. Then, you will be notified immediately of your status. After approval, your payment may be received in as soon as 1-2 business days.
Quickpay Funding can send your money directly to your checking account via ACH or send a bank wire to your designated bank account. For our Transportation clients, we can also fund to your Quickpay Funding “Fuel card,” a Com Check, or Express Code. Your funding will be processed within 1-2 business days once your paperwork is complete.
Remember when sending a clear clean fax required an expensive machine and even a dedicated land line. Today, you can send a fax using your smartphone for free! There are several ways to send your signed documents to us that may not cost anything.
• A Factoring Company generally makes their credit decisions based on the strength of the Account Debtor’s, not the Seller’s financial strength or credit standing.
• Factoring offers flexibility and access to capital that traditional bank financing cannot. Unlike banks, Factors look at the quality of the collateral in order to fund.
• Factoring is a financial tool that increases cash flow and working capital and helps avoid problems from slow paying customers.
• Factoring allows you to take advantage of profitable opportunities requiring additional cash (i.e., larger orders from well-established customers.).
• Factoring quickly turns your unpaid invoices into immediate cash instead of having to wait 30 days to 60 days or more for payment.
• Factoring obtains working capital without dilution of ownership and control. No need to give up equity in your business to grow sales – no Shark Tank!
• Factoring provides operating cash on a controllable basis. You choose how much you factor and when.
• Factoring can help establish or improve a company’s credit standing by providing much needed working capital to your business.
• Factoring is considered to be “off balance sheet” financing and is less restrictive than Equity, Sub-Debt, Bank Debt or Long Term Debt.
• Factoring decisions are fast and reliable, with most clients applications reviewed and approved usually within 2 business days.
• A Factoring Company’s Credit department can quickly run credit checks on prospective customers and can manage the billing responsibilities thereafter. This eliminates the potential risk of unknowingly accepting work or orders from a customer who might never pay. This enables the owner of a small business to concentrate on growth and saves a larger company the expense of hiring such departments.