When business owners want to speed up their cash flow without incurring debt, they often choose to turn their outstanding invoices into cash in their pockets through factoring. If they are new to invoice factoring, they may not know how easy it is get started. They may wonder about how the application process works and how long it will take.
Let’s take a look at what happens after you’ve been pre-approved for factoring at one of North America’s top factoring companies. At Interstate Capital, a leader in the industry since 1993, the approval process is simple and fast.
Steps in the application process
While most business owners share certain goals, such as putting their cash to work instead of having it stuck in their accounts receivables, every business is different. At Interstate Capital, your sales rep and your underwriter will customize your factoring program to fit your needs. That starts with getting to know how your company works – and who you work for.
When you’re ready to begin the application process, here’s what you can expect:
- Applicant submits basic paperwork. This would include gathering the most basic information about your company. Typically these are documents that everyone has at their fingertips in their files.
– For a trucking company, these would be many of the same documents that are included in a broker packet: proof of insurance, copies of invoices you wish to receive funding for, and copy of your DOT/MC authority.
— For other businesses, this would include basic documents such as contracts executed with your customers, copy of your current accounts receivable aging report, and proof of ownership for the company.
- Underwriter collects and reviews paperwork. Your personal underwriter will be in contact with you throughout this phase as your paperwork is gathered and your application is processed.
- Credit department researches applicant’s customers. Interstate Capital’s in-house credit analysts will confirm that your customers are creditworthy and can be counted on to pay what they owe you. This helps protect you against doing business for a company that may not pay its bills.
- Client is approved and completes factoring documents. If your business is viable and your customers are reliable, then the staff at the factoring company will soon be welcoming you to this new partnership. You will sign a standard set of factoring documents and your customers will be notified that future payments will be sent to the factoring company.
How much time does the application process take?
At Interstate Capital, you could be funded in as few as one or two business days. With daily conversations and follow-up, the factoring experts at Interstate will fast track your application through the set-up process. Because Interstate Capital is a well-funded, privately held, independent factoring company, decisions are made fast with no outside interference. Once all your paperwork is submitted and the factoring documents are signed, it is possible to get your first funds on the same day you are accepted!
At this point, the application process – which may have lasted only a few days– is finished. At Interstate Capital, you will then be introduced to your dedicated account manager, who has already been briefed about you and is already familiar with your company and your customers. Now the funding begins! You can enjoy the peace of mind that when you partner with Interstate Capital and get paid fast.
To expedite your funding process and access Interstate Capital’s special benefits for clients, start with a free cash flow consultation.