Factoring is the process of securing money against outstanding accounts receivables for your business. Regardless of the idea out there that only businesses that are in financial difficulty use factoring, it is actually a usual practice for several companies. From time to time, almost every business, especially small ones and also startups, will find themselves short of cash while awaiting payment on a product or service already offered. What factoring does is permit you to have the money for payroll and overhead while you wait.
Factoring loans are not hard to get. As a matter of fact, most businesses qualify for factoring of approximately 80% of the value on outstanding accounts payable receipts. Despite the ease of them to get, there is an application process involved when making use of factoring with your business. Knowing how to obtain a factoring loan can make the entire process go extra smoothly for you when the time comes to get your factoring loan. Get in touch with Lease Funders today to see what factoring loan options are available to your business, we also offer lease factoring.
How it Starts
The first part of how to look for a factoring loan depends upon what organization you use for the service. If you have an online organization or at least the website as a means to contact them, you will likely be submitting a basic online application. If you are dealing with an organization personally, then you will fill out paperwork in person instead of electronically. Regardless, however, you will fill out similar info about not just your company, but also you directly.
Business Part of Application
When finding out how to make an application for a factoring loan, you can separate the process into three parts. The very first of those parts is information concerning your company. To submit your factoring loan application you will need, clearly, the name of your company. You will additionally need to provide the "DBA" if you have one, the physical address of your business, and all other contact details consisting of email addresses, websites, and even telephone and fax numbers.
From your business, you will also need to make sure you can provide your federal tax ID number and social security. What sort of business do you have in regards to what you do as well as whether your company is an LLC, corporation, partnership, or whatever else yours might be.
Personal Details
The following part of your factoring application will likely request personal info. Once again, you will require to have contact info and address. They will also likely want to know what percentage of the company you have. Lastly, for credit purposes, they will, in almost every situation, ask for your social security number.
Customer Info
Finally, when learning how to apply for a factoring loan, you will need some client information. You will likely be asked to supply the names of a minimum of a number of your biggest clients whose receipts you will be factoring. Additionally, you may need to provide information concerning how much money is well worth of unpaid A/R you have.
Understanding how to make an application for a factoring loan is important so that you can have information ready when the time comes. You will want to have information about your company, your personal, and also your clients' information. With all of that in hand, you will be just a few hours or days far from the factoring loans you require to maintain your business running successfully.