Factoring FAQ

If you are considering using our invoice factoring service but still have some questions, this list of frequently asked questions may help answer the questions you have about factoring. Although invoice factoring, or often referred to as accounts receivable factoring, is not a new financing tool, many business owners may not fully understand the details of factoring and how invoice factoring can help their business grow.

How will factoring with ACC help my business? By using our invoice factoring service, you will enjoy the benefits of increased cash flow, no collection headaches, lower credit risk and increased time to focus on the important aspects of your business. Through factoring with ACC, you can get the cash you need quick to pay for your day to day business expenses such as payroll, inventory, or fuel. Additionally, by not worrying about having the cash you need to operate your business, you can spend time improving your business by focusing on operations, increasing your marketing efforts and spending more time developing relationships with new or current customers.

What does ACC look for in a client? When evaluating a prospective client, we look for businesses that are successful but are just struggling with managing their cash flow. We look for businesses that provide their goods or services to stable, credit worthy customers. Most importantly, however, we are looking to provide our invoice factoring services to businesses with honest, hard working, principled owners and employees.

How long does it take to be approved after applying with ACC? We generally can make a decision on your application within 72 hours of receiving your application and all accompanying documantation requested on our application form.

When I factor an invoice, how long does it take to receive the money from ACC? Once we receive an original invoice and supporting documentation, you will generally receive funds within 24 hours. However, we also have a same day wire service and you can receive same day funds for a minimal fee.

If I factor with ACC, what do I do with my invoice and paperwork that would otherwise be sent to my customer? When you factor your invoices with us, you are actually selling that invoice or receivable to Advanced Commercial Capital. The original invoice, proof of delivery, contract, purchase order or any other relevant documentation should be sent directly to us at our corporate office in St. George, Utah. Once we receive your paperwork, we will advance you your money and immediately bill your customer using the paperwork you supply to us.

Who will receive the payments from my customers? Generally, your customers will remit their payments directly to us. When we invoice your customers using your invoices, we provide them with payment instructions to send the payments to our corporate office. However, occasionally your customers may accidentally send a check to you for an invoice that was factored by ACC. If this happens, it is critical that you immediately forward the check to us rather than deposit it into your own bank account.

Do I have to factor all of my invoices? When factoring with ACC, we review your unique situation and try to customize a factoring facility that meets your specific cash flow needs. Generally, we do not require that you factor all of your invoices with us. You can determine which invoices you want to factor to meet your currrent cash flow requirements.

What is the difference between "Recourse" and "Non-Recourse" factoring? Factoring with recourse means that you, as the client, still share in the credit risk of each invoice factored. If your customer does not pay the invoice, you will be obligated to buy the invoice back from ACC. Factoring with a non-recourse agreement means that the factor bears all of the collection risk and cannot come back to you for payment on the invoice. Typically, factoring with recourse has lower fees than non-recourse factoring since the factor carries more risk.