General Factoring

What is factoring?

Factoring is a way to get paid almost immediately for the work you do by turning invoices into immediate cash. It allows companies to access their working capital. Factoring is also known as accounts receivable financing.

How does factoring work?

Factoring is a financial transaction in which a business sells its accounts receivable to a third party, called a factor, at a discount. At iThrive Funding, we buy your invoices for a nominal fee and pay you within 24 hours. Then we do all the billing and collecting so you don’t have to.

How much cash will I receive?

Depending on the industry, you will receive up to 95% of the value of the invoice.

What are the benefits to factoring?

There are plenty of benefits to factoring! Because you don’t incur debt and get the cash you need to pay your bills on time, many clients find that factoring can improve their company’s credit rating over time. Also, factoring provides added back office support, free credit checks and professional A/R management services at no additional cost to you.

How long does it take to sign up?

We keep paperwork to a minimum. We’ll ask you a few basic questions and develop a program tailored to fit your company’s needs. A typical set up can be completed within a couple days.

How long does it take to receive cash?

Once you’re set up, you’ll receive cash in about 24 hours, usually within a couple of hours if the money is going to your iThrive Funding fuel card. Initial funding may take a day or two longer while we set up your account. The quicker we receive the documents we need, the quicker you’ll get paid.

Can I factor all invoices from my customers?

You can factor all invoices or freight bills for customers that meet our credit standards. To help you determine if your customer has been pre-approved, you can use our free 24-hour Credit Check service, which is available via our online account management system after you sign up. Most companies are already in our extensive database; however, an occasional business may not be listed. If this is the case, just call us at 844-770-2958 and we’ll conduct a quick customer credit check for you at no extra charge.

What type of businesses factor?

Nearly any business that sells a product or provides a service to a larger credit-worthy business can factor.

How much does factoring cost?

Typically it’s just a few cents on the dollar. iThrive Funding will outline a couple of options so you can decide which works best for your company. Our rates are competitive and many companies find factoring often pays for itself because they can put the cash to work for their business.

Factoring vs bank financing/loans?

iThrive Funding focuses on the credit worthiness of your customers when making funding decisions. Banks will focus on collateral, credit scores, financial performance, and cash flows. Factoring is a great alternative. For starters, your company won’t incur any debt when factoring with iThrive Funding. iThrive Funding is able to make quick funding decisions whereas banks may take weeks to get the required approvals. Remember, this is money you already earned. We just get it to you faster.

What if I have an existing loan with a bank?

If a bank has a lien on your company’s accounts receivable, we will ask the bank to subordinate that lien in favor of iThrive Funding. Whether this is possible depends on the policy of the individual bank in question. Alternately, we may be able to arrange to pay down or pay out the loan from your funding.

Underwriting and Onboarding

What industries do you factor?

Transportation, Manufacturing, Staffing, Distribution, Wholesale, Service-based companies and Government

How long to I have to be in business?

iThrive has no length of business requirement. Start-ups qualify. As long as you are selling goods and/or providing services to reputable companies, iThrive Funding will finance the invoice, even if it is on the first load delivered or service provided.

Does my credit score affect my ability to factor?

No. We only rely on the credit strength of your customers.

Can I switch from my current factor to iThrive Funding?

Yes. If you’re not satisfied with your current factoring company or their credit limits are too low, we would be happy to review your options and provide a customized quote.

My company has an outstanding tax bill. Can I still apply for Funding?

Yes, tax problems vary in complexity and are handled on a case by case basis. In many situations we have worked with the IRS so that you may both receive funding and satisfy their needs.

How much of my company’s accounts receivable can be funded?

iThrive Funding can purchase up to 100% of your company’s creditworthy accounts receivable.

How long will it take to receive first funding?

Initial funding normally takes about one business day after we receive your signed agreement and invoices. After the initial funding, your company may receive funding on the same day we receive your submitted invoices.

How are my rates determined?

Determining your rate is quite straightforward. Factoring companies use a few basic criteria to calculate the rate:

  • Monthly sales volume you factor
  • Payment period by your customers (how long it takes your customers to pay)
  • Diversity of your customer base (referred to as “concentration”)
  • Your industry

Based on these criteria, rates are typically 1- 5% of the amount invoiced. The benefits of receiving immediate cash typically far outweigh the fee.

Factoring Mechanics

What is the process for funding my invoices?

Check our website 24/7 or call our office to check the credit worthiness of the customer

  • Deliver the load and receive your signed P.O.D.
  • Fax/Email/Mail us your Rate Confirmation, signed P.O.D., and Invoice
  • Your account representative will process the invoice
  • We will fully fund you (less the fee) same day via Wire, ACH, or directly onto your iThrive Fuel Card
  • We will then send your invoice to the customer and handle all collections

You can move on to your next load with cash for fuel and other expenses, eliminating downtime and waiting on payments.

Am I required to factor all my invoices?

No, you choose which invoices you want to factor. At iThrive, you decide which customers you’d like to factor. With our flexible program, you can add new customers whenever you want.

Who manages the collection process?

iThrive Funding handles collections so you can focus on growing your business. We are professional and very courteous in our approach with your customers. Our experienced team of accounts receivable specialists has worked with hundreds of account debtors, and most likely already works with your customers.

How will I receive my money?

We can send your money a variety of ways: by wire transfer directly to your bank account, ACH to your bank account, or through your iThrive Fuel Card.

What’s the difference between recourse and non-recourse factoring?

Non-recourse factoring means the factor (iThrive Funding) assumes the credit risk of non-payment by your customer. Recourse factoring means you always remain responsible for non-payment. iThrive Funding offers both non-recourse and recourse programs.

How will I know the status of my factored invoices?

As a client of iThrive Funding, you’ll receive 24/7 access to your account through our secure online account management system.

Can I fund invoices I have already billed to my customer?

Yes, a client just starting with us does not have to wait for new business to begin funding. It is their option to be funded on invoices already outstanding.

Who do my customers pay?

Your customers will pay us. Don’t worry, we’ll send a professional notification to your customers and let them know exactly where to send their payments. Most larger companies are quite familiar with factoring and probably already have a relationship with us.

Do you offer a trial period?

Absolutely! Kick the tires! Try iThrive Funding risk free for 90 days and let us show you how factoring can work for you.

What should I do if a customer mistakenly sends payment to me instead of iThrive Funding?

This might happen, particularly during the initial funding process. If this should occur, the check must be forwarded to iThrive Funding at once.

Other

Why is iThrive Funding the best choice for factoring?

We are not your average factoring company. We pride ourselves in offering win/win solutions. iThrive Funding is about partnerships working together to create success. We guarantee if we are not the right fit for your business needs, we will find someone for you who is.