FAQ
How does AR Funding affect the relationship I have with my customers?
At AR Funding, we do everything possible to enhance the relationship you have with your customers. Every attempt is made to minimize disputes by carefully reviewing your company’s paperwork before it ever reaches your customer by mail. We also make it a priority to respond to and/or mail out any invoice or piece of correspondence on the very same day we receive it.
You can rest assured that any and all contact with your customers by AR Funding will be conducted with the highest level of professionalism. We’ll notify you immediately should any disputes or similar situations arise, so that you may address them directly with your customer. And, to emphasize your continued commitment to customer service, any written communication from AR Funding to your customers will be on your letterhead, not ours.
Is my company responsible for collections?
We encourage our clients to participate in the collection process by coordinating our efforts. However, most of our clients have chosen to cut costs and save time by outsourcing this task completely to AR Funding. Our collections department is always available to review documented notes and keep you up-to-date on your accounts receivable.
Who should my customer address payments to?
Your customers will continue to make the checks payable to your business. But to ensure timely and proper posting, AR Funding requires that all checks be remitted directly to our post office box. Any payment received from your customer is posted on the same day it’s received, and any monies due to you are available then, as well.
What happens if one of my customers can’t pay an invoice?
In this rare instance, we’ll discuss with you how you’d like to repay any amount outstanding on the invoice. At AR Funding, we’ll always work with you to minimize the effect on your company’s cash flow.
Will working with AR Funding affect my chances of securing traditional bank financing in the future?
You may be surprised to learn that factoring your accounts receivable will, over time, actually enhance your ability to qualify for traditional bank financing. Banks prefer to lend against assets that are more permanent in nature and easy to identify, like equipment and real estate. And since the only collateral AR Funding requires is your accounts receivable, all of your other assets will be available to use as collateral for bank financing. Plus, banks are more attracted to companies with well-managed accounts receivable—and those that make timely payments because of increased cash flow.
Is accounts receivable factoring a widely accepted practice?
In today’s world, many small- to medium-sized businesses are finding it increasingly difficult to obtain growth capital from commercial banks. As a result, accounts receivable factoring has become more popular than ever. Some larger retailers now even include a column in their purchase orders indicating whether the invoice is to be funded or not. But not until recently have businesses with annual sales under $20 million been able to obtain funding rates that will allow them to compete with those larger companies.
What types of reporting does AR Funding provide?
Detailed daily reports are available to you anytime using AR Funding’s secure, on-line reporting. This innovative, user-friendly feature allows you to:
Access same-day reports on accounts receivable activities, such as Purchases and Advances, Collections, and Reserve Account Summary.
Print out easy-to-read reports from your own computer—at your convenience.
Feel confident in knowing your company’s information can only be accessed by those authorized to do so.
What makes AR Funding different from other Factors?
Simple. At AR Funding, we set ourselves apart from our competition by giving our clients the ability to do more—more for their employees, more for their customers, and more for their bottom lines. We believe every business deserves the chance to grow, and our solid, proven methods for invoice factoring can help your business do just that. Everyone at AR Funding goes the extra mile to help make sure you’ll not only be operating in the future, but you’ll be thriving and productive as well.
How do I get started with AR Funding?
You simply fill out an application and provide additional information such as, two years of financial statements/tax returns, detailed aging of both receivables and payables, personal financial statement and articles of incorporation. There is no application fee.
What is the average cost of invoice factoring?
We have several programs with various fee structures starting at 1% for 30 days. The rates are based on the volume of funding, the higher volume of funding the lower the rate. AR Funding has no additional financing charges.
Am I locked into a long-term contract?
No. You can simply terminate at anytime with a 90 day written notice. If you are approved by a commercial bank for financing, a lesser notice is acceptable.
Do I have to submit all invoices to AR Funding for financing?
No. AR Funding does not require you the fund all of your invoices. You can manage your cost of funding by only submitting selective invoices.
