FREQUENTLY ASKED QUESTIONS
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. 1. The emphasis is on the value and quality of the receivables rather than the firm’s credit history or rating. 2. Factoring is not a loan – it is the purchase of a financial asset – your receivable. 3. Factoring involves three parties whereas a bank loan only involves two. Your business presents Crown with current or ongoing accounts receivable invoices and receives cash. We keep you informed throughout the month of the status of your accounts. Your clients make all payments to you through Crown's lock box. You receive immediate credit and real time reports.
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 ther an upfront application fee?
No, there is no up front application fee. Our business is to help you do more, and better business, through increased cash flow and effective financial management of your accounts receivable.
4. Is it necessary to factor all of our receivables?
No, you may submit all or part of your invoices based upon your needs.
5. How much can you advance aginst an invoice?
Normally Crown will advance up to 90% against an invoice. Under special circumstances that number could be higher or lower, based upon many factors including the size of the invoice and who the customer is.
6. how often can I submit invoices and when does my company receive the advance?
Invoices can be submitted on a daily basis. Invoices are funded with a wire transfer directly into your account on a daily basis, usually within 24 hours of submission.
7. How will i know what is happening with my account?
You will receive a statement from Crown each day that there is activity on your account. We will show you who paid and how much they paid. We're there to work with you on a daily basis, as needed, to insure continuity and accuracy. We believe that personal service is paramount!
8. Can crown financial work with companies that have progress or milestone type payments?
Yes, Crown provides advances on all types of progress billing, including construction draws.
9. Will crown do business with my company?
We work with all kinds of businesses to improve their cash flow and profitability. The quickest way to determine if Crown Financial is a good fit for your company is to give us a call. In a brief conversation, we can determine if your business fits within the spectrum of industries in which we work.
10. WHAT HAPPENS IF A CUSTOMER DOES NOT PAY?
You will be required to buy back any invoices over 120 days old. If Crown receives subsequent payments you will receive 100% of the recovered amount. There are, however, special circumstances where this provision is waived, provided that we approve the terms in advance. Our goal is to make your money work for you - to help your business do business.
11. WHAT HAPPENS if payments are received for invoices not factored?
Those payments are sent to you within 24 hours of our receipt.
12. how do we know that crown is a good company to do business with?
Give us a call. We'll be happy to furnish you with references. Additionally, we'll be able to share real life situations about companies with which we have worked over the past 25 years.
13. is crown competitive with other COMPANIES?
Not only are we competitive, but because of our experience through the ups and downs over the past 25 years, we have a broad perspective and understanding of how to help our clients. Our personal service is unequalled and the only way you'll ever know if we are competitive with your current provider is to give us a call. There are a lot of companies that have popped up within the past few years. Very few have the capital reserves and depth of experience of Crown Financial. Our knowledge, experience and judgment are benefits that make a difference for our clients.
Have a question not covered here?
Give us a call. We'll be happy to answer any questions you may have.