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Guide to Factoring

TRADITIONAL FACTORING

Factoring is a form of working capital finance whereby clients sell their Accounts Receivable for an agreed term and recieve immediate cash availability. Factoring provides the following advantages:

Funding

  • Immediate cash advances of 80-90% of the invoice amount, with the balance being paid to you when your customer pays us.

Accounts Receivable Processing

  • Franklin does all your accounts receivable processing from the time you issue an invoice to collection. We provide you with a report every time a customer pays an invoice, as well as an aged analysis report of all your customers’ accounts. Real time updates are available online 24/7.

Credit Administration

  • We investigate your customer’s creditworthiness and provide you with credit advice.

Collections

  • Our experienced account managers will at all times interact with your customers politely, tactfully and respectfully.

FACTORING BASICS

  • Factoring is the sale of invoices at a discount to a factor for immediate cash.
  • The invoices are due to be paid at future dates certain.
  • The factor purchases the invoice when the invoice is issued and then receives payment directly from your customers.

 

“We talked to other factoring companies. They weren’t as straightforward or professional. They were unscrupulous. Franklin was upfront and gave us plenty of references which some of the other companies were unable to do.”

President, Illinois-based Staffing Company