Frequently Asked Questions about Factoring

1. What is Factoring?
   Factoring is a transaction where a business sells its accounts receivable or invoices to a third party at a discount  in exchange for immediate cash with which to finance continued business and operations. Factoring differs from a bank loan or line of credit in three main ways. First, the emphasis is on the value and quality of the receivables rather than the firm’s credit history or rating . Secondly, factoring is not a loan – it is the purchase of a financial asset – your receivable.  Finally, a bank loan involves two parties whereas factoring involves three.
2. How long is the application process?
   Once we receive your information, we respond within 24 hours with our proposal.  Initial funding closes as soon as your paperwork is completed.
3. Is there an upfront application fee?
   No
4. Is it necessary to factor all of our receivables?
   No.  You may submit all or part of your invoices based upon your cash flow needs.
5. How much can you advance against an invoice?
   Crown will advance up to 85% against an invoice.
6. Is Crown Financial recourse or nonrecourse?
   Crown is recourse.
7. How often may I submit invoices for funding?
   Invoices may be submitted on a daily basis.
8. How will I keep up with what is happening on my account?
   Our team of account managers is there to work with you on a daily basis as needed to insure continuity and accuracy.  We believe that personal service is paramount.
9. Can Crown work with companies that have progress or milestone type payments?
   Yes, Crown provides advances on all types of progress billing, including construction draws.
10. What will my customers think?
    Factoring has become a preferred choice of funding for many industries.  It is nothing more than a credit line which banks offer in another form.  Most of the customers we work with are very familiar with factoring.
11. How much does it cost to factor with Crown?
    Our fees are very competitive. We evaluate each situation on its own merits and circumstances.