Frequently Asked Questions
If my business cannot qualify for a bank loan, how can you help me?
A factoring relationship is built on the creditworthiness of your customer and your ability to satisfy that customer with the services or products your business provides. Because of this, past credit problems, bankruptcies or no credit will not prevent us from doing business with your company.
When does factoring make sense?
Factoring makes good business sense when having access to cash improves your profits and/or operations. As long as your business has the profit margin to handle the additional cost of this service, then it is beneficial if the funds from factoring can improve profitability or simplify your life. Examples are many but include taking advantage of business opportunities because you have the funds to do so. Other examples include taking vendor discounts because you have the cash to pay the vendor on a timely basis. A way this service can simplify your life is that with the ability to raise cash quickly by factoring, the business owner does not have to “sweat out” whether he will receive payment on an invoice that is due in time to make payroll or pay other bills.
What are the requirements for getting started?
The first step is to complete what you can of the online application. From there AAA Financial Group will review your business and customers to see if factoring makes sense for your situation. If so, then contracts are signed and the client can begin factoring.
How quickly can I get funded?
Once a client is signed up, funding occurs within 24 hours. Getting set up can take three to five days from application submission to first funding.
How does the funding process work?
Once contract are signed, then funding can start. The first step is to send over the invoice(s) and appropriate support, which varies by the types of billing generated. AAA Financial Goup then determines what steps are necessary to confirm the submitted billings. There are various ways that this can be accomplished, many of which do not require contact with your customer. This is dependent on what type of product or service is being provided. Once approved for funding, which should occur within one day, the factored invoices are funded by a check which can be mailed or picked up, or as an alternative, an ACH electronic payment can be sent to your bank account. This works well for those who do not want to have to come by to pick up checks. Reserves on collected invoices are paid in the same manner.
When can my company submit invoices to factor?
You may submit invoices whenever there is a need for funds. There are no limitations.
How do I track my invoices?
AAA Financial Group maintains all your factored invoices in a database. Outstanding accounts receivable reports (“agings”) are generated and sent to each client weekly or whenever requested.
Do I have to factor all of my invoices?
No, only factor what is needed to meet current cash needs.
How is the creditworthiness of my potential customers determined?
AAA Financial Group subscribes to national credit agencies such as Dun & Bradstreet and Creditsafe. Information from these sources as well as research of public records is used to assess creditworthiness and the likelihood of timely customer payment.
What are the costs to use this service?
The cost of factoring is based on your anticipated volume, the expected average invoice size and our assessment of the riskiness of the transactions being factored. AAA Financial Group strives to be competitive with other local factors. Furthermore, there is no cost for credit research on potential customers and there are no processing fees either. All you pay are the discounts that are negotiated when the relationship is established.
Does AAA Financial Group fund on purchase orders?
No, AAA Financial Group does not fund on purchase orders. That is a specialty unto itself that we do not do at this time.
Can you factor contractors?
Some types of contractors can be factored such as those working for the owner of the project and that do not involve progress billings.
Does AAA Financial Group work with brokers?
Absolutely, yes we do. AAA Financial Group has a broker referral program that compensates those who refer leads that result in new clients.