Frequent Asked Questions
If you’re looking for clear and concise answers about factoring, you’ve come to the right place. Factoring is a financial practice that can provide businesses with immediate cash flow by selling their accounts receivable to a third-party company. Whether you’re new to factoring or seeking to deepen your understanding, we’ve got you covered.
What is factoring?
Factoring is a type of financial solution in which you receive an immediate cash flow to continue your operations, without having to wait long periods of time to receive payment for your products or services. With factoring, you only need to sell your accounts receivable invoices to FactorTek and in exchange, we give you up to 90% of your invoices in a very short period of time. When that invoice is due based on the terms that you agreed with your customer, FactorTek takes care of the collection of the payment from the customer, relieving you from that burden.
How does FactorTek´s funding services work?
It’s very simple. First you fill out the online form with your application. Then, we evaluate the company that will pay you, or your providers, depending on the service. When the application and the evaluation are approved, you start sending us the accounts receivable invoices that you wish to negotiate and finally, we give you up to 90% of the invoice amount.
I´ve been denied by a bank for a loan, can I get funding through FactorTek´s factoring?
Yes, factoring operations DO NOT generate debt. Get the funds you need without incurring debt and without increasing the liabilities in your balance.
Is factoring different from credit?
Yes, in a factoring operation, you do not need to pay any money back to the factoring company, like you would in a company that provides you with credit. The company is keeping a small amount of your invoice in order for you to receive immediate cash flow, and then your customer is in charge of paying the factoring company.