Factoring is the sale and purchase of accounts receivable (invoices) for immediate cash, without incurring debt or diluting equity.

A factoring account is set up with a factoring company ("Amerisource") so that a company ("Client") can access cash against outstanding invoices.  Each time a Client generates an invoice to its customer for goods delivered (or services performed), the Client submits the invoice to Amerisource for immediate payment instead of waiting for the customer to pay the invoice.  The customer will pay Amerisource later.  The factor charges a fee for the service.  More info.

• Does it sometimes cost more to collect a debt than the amount of the debt itself?
• Does your sales staff also spend time collecting accounts receivable?
• Have you passed up sales rather than employ a credit agency to check out the customer?
• Have you missed a growth opportunity because your cash was tied up?
• Do you have to re-negotiate bank loans to meet seasonal business expenses and needs?

A bank loan becomes a debt on your balance sheet, thereby affecting your company's leverage and credit rating.  Factoring simply converts your accounts receivable into cash — an asset swap.  Unlike a bank loan, there is no debt for the Client to repay. In addition, many banks are simply unwilling to provide the amount of financing to you that a factor will provide.

It could be both.  Factoring can provide immediate cash for short–term matters.  But, if used regularly, it can also smooth out your cash flow fluctuations, making working capital more regular and predictable on an ongoing basis.

No.  As long as your customers are credit worthy and have satisfactory payment history.

No.

No.  You can pick and choose specific invoices to factor.

There is a monthly minimum of $20,000 and a maximum of $2,000,000.

No problem.  Factoring can either replace, or complement your existing bank loan or line of credit.  Amerisource works with banks nationwide to provide factoring to bank clients in addition to their existing bank loans.

Yes, as long as you have creditworthy customers.  Even pure startups are qualified applicants.

Typically 2–5 working days.

First, submit a Client Profile ("application") along with some basic support documents.  Your Client Profile is quickly processed for approval.

To receive pre-approval and most timely response, you should submit:

• Client Profile (our application)
• Current A/R aging
• Master customer list
• Complete invoice set (including supporting documents)

Your company can be located anywhere in the U.S. or Canada.  Amerisource has Clients in 42 out of the 50 states.  We also can arrange International funding on a case-by-case basis.

Just about any invoice for services performed or goods delivered to legitimate businesses.

Initially, you should inform them.  They will also receive a friendly notice from Amerisource once you are approved and funded.

All Clients receive regular Collection Reports, A/R Aging Reports and Purchase & Advance Reports.

That depends on how your account is set up.  Factoring accounts are set up in two ways:  "Recourse" and "Non-recourse".  Under a "Recourse" account, Clients are required to either buy-back or exchange unpaid invoices.  With a "Non-Recourse" account, Clients are not responsible if their customers are not able to pay the invoices.  The fee for "Recourse" accounts is typically a little cheaper than for "Non-Recourse" accounts.  Amerisource offers both account options — you choose what is the best for your business.

In addition to benefiting you, factoring can also be a huge benefit to your customers.  You can extend better trade payment terms to your customers because you will no longer have to wait for invoice payments.  In addition, your improved access to working capital gives you greater financial strength — making you a much more reliable supplier for your customers.  You can carry more inventory on-hand, enabling you to be more responsive to your customers' needs.  And finally, your ability to handle larger orders at a moment's notice creates more flexibility for both you and your customers.

You're simply affirming your integrity, the validity of your invoices and your promise not to commit fraud.

It would not be cost effective to file a separate lien for each and every invoice as it is created.  Thus, a simple blanket lien is filed at the outset of the relationship.  In addition, a lien is required on non-factored invoices in order to secure a client's responsibility to buy-back invoices that become the subject of a dispute.

Yes, we will provide references upon request to serious candidates who submit a Client Profile.