Shedding Light on the Prerequisites for Invoice Factoring
When a bank rejects your application for loan you may consider the idea of approaching a factoring company and ask them to find out if you are eligible to take advantage of invoice factoring. If the company agrees to oblige you and factor your invoices you’d be expected to provide them with some basic information. Otherwise, the company will not be able to begin the factoring process and there will be a delay in your payment for an easily avoidable reason. Just so you know the company is first of all likely to ask for Articles of Incorporation but this is just the beginning.
Interestingly, the factoring company may not start with the funding process unless you provide them with a copy of your ID. The good news is that if you already have your driver’s license or passport you can submit a copy of either of the two and the company will be on its way to come to your rescue. Nevertheless, it is worth mentioning that the company may different prerequisites for startups when it comes to accounts receivable financing. So, if you own one of the start-ups you should be prepared to submit your business plan to help the company develop an understanding of your business.
Furthermore, sometimes it may happen that the company also asks for projected sales forecast. The point is that you should not take the aforesaid things personally and must realize that if the company is willing to offer help then they’d want to find out if everything is alright at your end. Anyway, the submission of the aforesaid forecast is likely to be followed by you providing the company with your own history and profile. The good news is that the aforesaid information may not be necessarily used to determine your eligibility and the company might simply ask for it to begin with the process of factoring.
Author is a Well-known writer about Business & Finance themes such as Business Loans and Funding Solutions . To know more about Asset Based Lending & Invoice Factoring.