FAQs

Is accounts receivable funding a new financing option?
Accounts receivable funding is one of the oldest forms of financing. It has been around in one form or another for centuries. Until the mid 1980s, most people thought accounts receivable funding was only used in the textile and garment industries. Today, accounts receivable funding is a widely used and viable financing solution for all types of businesses that extend credit terms to their customers.

How can accounts receivable funding help my business?
By providing an immediate source of cash flow for your company.  You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and more.

How is invoice factoring different than a loan from a bank?
Factoring is the purchase of a company's accounts receivable as opposed to a loan that creates debt on the balance sheet. Factoring focuses on the creditworthiness of your customers while banks focus on your company's financial history and cash flow. Accounts receivable funding is not a loan, therefore provides you with less debt on your company's balance sheet. Infusion Funding LLC will make a quick funding decision, while banks may take weeks—even months—to approve a loan.

Will my company be eligible for accounts receivable funding if it has a bank loan or line of credit?
If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate the lien. This is a common occurrence, most banks will accommodate the request, but we must know this information in advance.

My company owes back taxes. Can I still apply for accounts receivable funding?
Yes, Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can dis¬cuss the payoff of your back taxes or a lien subordination with the IRS.

I have had a past bankruptcy, is accounts receivable funding still an option?
Yes, even if you have credit problems or a past bankruptcy.

Which customers would be good candidates for accounts receivable funding?
Invoices to creditworthy business and government customers can be funded. First, we need their names, addresses, phone numbers and the amounts of credit desired. This will save you time when submitting invoices to us. Also, anytime you obtain new customers we will check them out for you.

Do I have to factor all of my invoices?
No. You decide which invoices you want to factor, which invoices you want to keep as your own, and how long that you want to factor. There is no requirement to factor all of your invoices.

How long does it take to receive the first funding?
The initial funding takes between 1-3 business days after we receive your signed contract. If you wish, you can send your invoices to be funded with the signed contract. After the initial funding, your compa¬ny can receive funds usually within 24 hours after verification.

Are accounts receivable funding fees tax deductible?
Accounts receivable funding fees are an expense and should be treated as such.

What should I do if my customer mistakenly sends the payment to my company?
This might happen, especially with the first invoice. If this occurs, the check must be sent to us immediately. We also ask that you notify your customer to pay us directly in the future.

What will my customers think?
Factoring has become very common and most companies realize that rapidly growing companies require more working capital than traditional banks will provide and everyone knows that banks have largely abandoned small businesses. It's very likely that your customers have already worked with a factor in the past. Key points are that working with Infusion Funding LLC helps you be even more responsive to your customers, your payment terms to your customers will not change, and your day to day contact with your customers stays the same.

How can I be certain that your company will treat my customers well?
The last thing we want is for you to lose a customer. We are not a collection agency and we will never harass your customers for money. Maintaining your customers' goodwill and confidence are of utmost importance to us!


^ Back to Top