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Factoring Application, Approval & Funding Process
How long it really takes?


About the Factoring Application Process

It is very common to find factoring companies’ ads offering same day factoring approval. Let’s see what a factoring application process involves to get a realistic estimate of how long a final approval may take.

  1. Step One

    After you take the first step and decide to contact a factoring company you will be put in touch with some kind of company representative. In most cases this person will be a call center or salesperson that will need to talk to his/her supervisor before being able to provide you customized information. A few companies like ours will put you directly in touch with a decision maker who will listen to your needs and if it sounds like there is mutual interest, send a factoring application right away.

  2. Step Two

    You will now need to complete the factoring application and send it back to the factor, including some documents that will help the decision maker analyze your business and clients and define a customized factoring proposal. The information required by different companies may differ slightly but usually includes at least the following items:

  3. Basic information about your main customers

    Up-to-date Accounts Receivable detailed information

    Other financial and legal information

  4. You will need to gather all this information and send it to the factor to continue with the process.

  5. Step Three

    After analyzing all the information provided to the invoice factoring company, they will evaluate your funding request. A serious analysis will likely take at least one day.  If the request is approved then a reputable factoring company will make you a formal written proposal.

It’s easy to recognize that it is unlikely that you can get a factoring proposal on the same day when taking in account all the steps that underwriting takes. What some companies like Gateway can offer is the guarantee of a same day factoring approval, and dedicated attention to help speed up the factoring application and final approval process.  Why… you’ll talk directly with a decision maker.

About the Factoring Funding Process and Speed

Many companies offer same day, 2-hour, or immediate funding in their ads. Let’s review the funding process to understand how viable this truly is.  Generally, this is only the case AFTER you have been fully underwritten, documents are signed and verification has occurred.

After all of the necessary due diligence and underwriting has been completed, you will be ready to begin factoring and actually receive funds.

This is the reason first funding usually takes three to five business days. It’s extremely unlikely that a factoring company will be able to offer same-day, 2-hour, or immediate funding the first time due to all of the necessary procedures that must be accomplished by the factor to ensure they are secured in their position.

All these audit activities are notoriously reduced in consecutive funding requests.  In these cases ongoing funding requests can generally be approved in 24 hours, or even less time, depending on the debtor and other specific customer-related variables.

 

Ready to begin factoring? Learn why Gateway is the ideal full service factor for your business.factoring company