FAQs

Q. Can I factor invoices that I have already mailed to my customers before I found out about Interstate Capital Corporation?

A. In most cases, Interstate Capital Corporation can accommodate a request to purchase invoices that pre-date our service agreement, even if they have already been mailed to your customer. We will evaluate your open invoices and determine which are eligible to be funded.

Q. Do I have to factor all my invoices?

A. No. You are free to factor as many or few invoices as you desire, and as many or few accounts as you desire for whatever period of time you desire, all within the frame work of a one-year service agreement. There are no minimums to meet and no minimum fees you must pay.

Q. Do I have to maintain a reserve?

A. No. ICC has “zero reserve requirement.” This means that within one banking day of our receipt of payment from your customer on an invoice you factored, we will deposit the unadvanced portion (the difference between the amount we collected and the amount we initially advanced), minus our discount fee, into your reserve account. You will treat your reserve account in much the same way you would a savings account at a bank. If there is a positive balance, it is your money and you may withdraw funds Tuesday through Friday in the form of a check or wire transfer. Unless you are in default of the service agreement, there is no hold or restriction placed on funds in your reserve account.*

*Refer to Service Agreement for Details

Q. Do I need to tell my customers? And, what will they think when they find out I’m factoring?

A. Your customers probably have many vendors/suppliers that have assigned their payments to factoring companies. Factoring has become so common in almost every industry that most companies recognize its place as a popular and respected means of financing accounts. The truth is, your customers will be much less concerned about your financing than your providing them with superior pricing, product, and service.

It is not necessary for you to inform your customer that you are factoring because the assignment letter takes care of that. If you feel you must personally make a call, you are free to do so. In either event, your ICC account manager will make sure the Accounts Payable personnel at your customer's office receives the assignment letter and confirms that their payable system reflects ICCs' remittance instructions.

Q. How do I keep track of invoices I have factored, payments you receive from my customers, and whether or not I have funds in my reserve account available for withdrawal?

A. We provide you with a secure user ID and password with which you may access all of your factoring reports via Internet at www.interstatecapital.com. Our reports may be viewed as of any date or range of dates you select. To view payments we have received from your customers, select the Collection report. To view your reserve account balance and transactions affecting its balance, view the Reserve Account Report. To view invoices you have sold to us, select the Purchases and Advances Report or Invoice Aging Report. All reports are "PDF" format for easy portability, viewing, and printing.

Q. How do I know if my accounts are eligible to factor?

A. We have developed a proprietary on-line system called the Credit Inquiry System (CIS) that you may access securely at www.interstatecapital.com. You simply log into the CIS using your secure user ID and password, then tell us the name and phone number for your customer and the amount of credit you wish for us to approve. We will confirm your request and assign it a tracking number. In as few as five minutes, you will receive an email with a link to your tracking number in the CIS. At any time, you may log in and view your past inquiries and the credit limits approved by ICC in the CIS.

Q. How long does it take to get started?

A. In most cases, Interstate Capital Corporation can fund within three business days of you returning our documents to us signed.

Q. How will my customers know that they are supposed to remit payments to you?

A. One of our standard documents is an assignment letter signed by you and us. We mail that letter to the Accounts Payable personnel in charge of your account at your customers' office. The letter instructs your customer to remit payments on your account to ICC.

Q. Is there a limit on how much I can factor?

A. Interstate Capital Corporation sets limits based on the financial strength of your customer. We will check their credit and approve limits based on your customers' financial strength and how well they pay their bills. Most of our clients sell us between $50,000 and $2.5 million worth of invoices per month.

Q. What happens if I sell you an invoice that my customer fails to pay?

A. If your customer fails to pay a factored invoice within a prescribed number of days, typically 60 - 90 days, you are responsible to “repurchase” the invoice. Generally, we charge the invoice back against your reserve account. If a negative reserve balance results, you complete the repurchase by replenishing your reserve account the next time you sell us a schedule of invoices.

Q. What happens if you receive a payment from my customer that relates to an invoice I did not factor or one that I initially factored, but later repurchased?

A. If we receive a payment that relates to an invoice which, on that date, is not factored, we deposit the non-factored amount into your reserve account. Unlike the rest of your reserve funds, we will automatically withdraw, disburse and mail those non-factored funds to you in the form of a check. There is no fee associated with processing non-factored funds.

“Our mission is to treat every client as if they are our only client.”

Tony Furman
President, Co-Founder
Interstate Capital Corporation