How Does Factoring Work?
The first part of factoring relies on you! Tell us about your business—give us a call or fill out a form, either way works. Based on what you tell us about your business, we’ll match you with a factoring company in Kentucky that best fits your needs.
That factoring company will then put your business through a short approval process. Once approved, your business can begin submitting invoices for work completed. The factoring company will contact your customer or customers and verify that the service was completed or the order was filled.
The factoring company then advances your business up to 95 percent of the accounts receivables, keeping the rest as the reserve. Your customer pays the factoring company on their normal payment terms, and the factoring company releases the reserve to you minus a small factoring fee.