How Factoring Works

Every company has at one time or another experienced a lack of working capital due to slow cash flow. This in turn restricts growth and limits opportunities for expansion. By factoring your account receivables, you will find that your worries about cash flows cease to exist. You will have more time to focus on increased productivity, increasing sales, and reducing expenses.

Factoring works like this:

  • Send us your invoices with proof of delivery or performance. The goods must have been delivered, or services performed
  • We verify your invoices and then advance you up to 85% of the gross amount. This is known as the "advance"
  • Payment of the invoice is made in your name, to our lockbox. Once we receive the payment of the invoice, we subtract our advance (previously paid to you), the fees we earned, and forward to you the balance (known as the "reserve"). This is the quickest funding option available!

It's that easy!

With Affiliated Funding, there are no:

  • Minimum FICO scores
  • Monthly minimums
  • Early termination fees
  • Processing fees
  • Per invoice fees
  • Monthly service fees
  • Check processing fees
  • New customer fees
  • Lien termination fees
  • Prepayment fees
  • Termination fees
  • Early reserve release fees
  • Minimum reserve balances


how factoring works