More Factoring FAQ:

Over the years, we have had to answer all kinds of questions; some more often than others. We have compiled a list of some of the more popular ones below. Of course, if you do not see the answer to your question, please feel free to contact us at 1-800-707-4685 or fill out an online request to have a representative contact you.

Do I have to factor all my invoices?

No. You are free to factor as many or as few invoices as you desire, and as many or as few accounts as you desire for whatever period of time you desire, all within the frame work of a one-year service agreement. There are no minimums to meet and no minimum fees you must pay.

How long does it take to get started?

In most cases, Interstate Capital Corporation can fund within three business days of you returning our documents to us signed.

Is there a limit on how much I can factor?

Interstate Capital Corporation sets limits based on the financial strength of your customer. We will check their credit and approve limits based on your customers’ financial strength and how well they pay their bills. Most of our clients sell us between $50,000 and $2.5 million worth of invoices per month.

Can I factor invoices that I have already mailed to my customers before I found out about Interstate Capital Corporation?

In most cases, Interstate Capital Corporation can accommodate a request to purchase invoices that predate our service agreement, even if they have already been mailed to your customer. We will evaluate your open invoices and determine which are eligible to be funded.

Do I have to maintain a reserve?

No. ICC has a “zero reserve requirement”. This means that within one banking day of our receipt of payment from your customer on an invoice you factored, we will deposit the unadvanced portion (the difference between the amount we collected and the amount we initially advanced), minus our discount fee, into your reserve account. You will treat your reserve account in much the same way you would a savings account at a bank. If there is a positive balance, it is your money and you may withdraw funds Tuesday through Friday in the form of a check or wire transfer. Unless you are in default of the service agreement, there is no hold or restriction placed on funds in your reserve account.

What happens if I sell you an invoice that my customer fails to pay?

If your customer fails to pay a factored invoice within a prescribed number of days, typically 60-90 days, you are responsible to “repurchase” the invoice. Generally, we charge the invoice back against your reserve account. If a negative reserve balance results, you complete the repurchase by replenishing your reserve account the next time you sell us a schedule of invoices.

How do I keep track of invoices I have factored, payments you receive from my customers, and whether or not I have funds in my reserve account available for withdrawal?

We provide you with a secure user ID and password with which you may access all of your factoring reports via Internet at www.interstatecapital.com. Our reports may be viewed as of any date or range of dates you select. To view payments we have received from your customers, select the Collection Report. To view your reserve account balance and transactions affecting its balance, view the Reserve Account Report. To view invoices you have sold to us, select the Purchases and Advances Report or Invoice Aging Report. All reports are “PDF” format for easy portability, viewing and printing.

What happens if you receive a payment from my customer that relates to an invoice I did not factor or one that I initially factored, but later repurchased?

If we receive a payment that relates to an invoice which, on that date, is not factored, we deposit that non-factored payment into your reserve account. Unlike the rest of your reserve funds, we will automatically withdraw, disburse, and mail those non-factored funds to you in the form of a check. There is no fee associated with processing non-factored funds.

How do I know if my accounts are eligible to factor?

We have developed a proprietary system called the Credit Inquiry System (CIS) that you may access via Internet at www.interstatecapital.com. You simply log into the CIS using your secure user ID and password, then tell us the name and phone number of your customer and the amount of credit you wish for us to approve. We will confirm your request and assign it a tracking number. In as few as five minutes, you will receive an email with a link to your tracking number in the CIS. At any time, you may log in and view your past inquires and the credit limits approved by ICC in the CIS.

How will my customers know that they are supposed to remit my payments to you?

One of our standard documents is an assignment letter signed by you and us. We mail that letter to the Accounts Payable personnel in charge of your account at your customer’s office. The letter instructs your customer to remit payments on your account to ICC.

Do I need to tell my customers? And, what will they think when they find out I’m factoring?

Your customers probably have many vendors/suppliers that have assigned their payments to factoring companies. Factoring has become so common in almost every industry that most companies recognize its place as a popular and respected means of financing accounts. The truth is, your customers will be much less concerned about your financing than you they are about you providing them with superior pricing, product, and service. It is not necessary for you to inform your customer that you are factoring because the assignment letter takes care of that. If you feel you must personally make a call, you are free to do so. In either event, your ICC account manager will make sure that Accounts Payable personnel at your customer’s office receives the assignment letter and confirms that their payable system reflects ICC’s remittance instructions.

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