FAQs

Absolutely! Since Factoring relies on your customers’ financial history, not yours, we can provide cash when banks cannot. Think of us as a business partner who’s there to help you.

Please visit our How it Works web page for an overview and examples of how the factoring process might work for your business.

Once your account is opened it’ll be only a short day or two to get your first funding. Just complete the Application and fax it back to us with the requested documents. You’ll be approved quickly and we’ll send you an Account Completion Package. Your account is open when we receive that package back.

Only the other guys make you do that. Fund a few invoices this month, more next month and none the following month. We’re flexible and we won’t charge you a minimum monthly fee (or any other fee).

Sure! We don’t have any minimums or maximums. We want you to use our service because you like it, because it’s a fair price and because it helps your company grow.

We don’t! When a check arrives in our office from your customer we’ll apply it to your account immediately. Then we’ll make the reserve available to you on the same day.

It’s easy. Factoring has become a widely accepted form of funding for small businesses like yours. We’ll use a simple Notice letter on your letterhead to let your customers know to send the check to us.

You bet! We’ll walk you step by step through the process of changing factoring companies. With our help it will be quick and painless.

If the Bank has a lien against your Receivables, you should tell us without delay. In this case, the following options are available:

• The bank will have to subordinate its claim to the receivables in favor of Aberdeen.
• The bank will have to be repaid so that it can terminate its claim against your receivables.
• Should either of these options not be feasible, factoring will not be available as Aberdeen must have first claim against the collateral against which it is advancing funds to your company.

If an Installment agreement is in place and is current, there is no impact on our ability to fund your company. If, on the other hand, the Tax Authorities have filed a lien against your company because of lack of payment on your part, unless the IRS is willing to subordinate its claim in our favor, your company is not eligible for funding by us.

A review of our Application Form on our website will show you what information is required from you.

A: We will check the credit-worthiness of all your customers and assign lines of credit to each one of them prior to finalizing our factoring contract with you. For us to do this, you will need to supply us with a comprehensive list of all your customers, including proper names, addresses, phone numbers. We will then perform our review and advise you of the lines we will provide.

It is our preference and probably more efficient overall, if you factor all your business with us. Nonetheless, you are not required to factor all your customers. Having said that, once you do factor an invoice to any customer, you will then have to factor all future invoices to that customer. Understand though, that ALL your invoices serve as collateral, irrespective of whether you choose to factor all of them, or not. We will not factor single invoices on a “spot” basis.

It takes us between 5-7 business days after receiving from you all the information we need, to perform our set-up procedures. Should we come up against unanticipated issues, this process could take longer. We try to prevent this by having extensive discussions with you prior to all this taking place.

We will advance funds to you on the initial funding day, of all outstanding invoices that you wish to factor, as long as those invoices are notolder than 90 days and your credit terms are Net 30.

We enjoy a relationship with PO Funding company, so if this is something you need, it can be set up easily, based on the volume of Purchase Orders you need to fund.

As long as these expenses are normal business expenses incurred in the production of income, yes.

As we are purchasing your invoices, we do verify them. This is, however, an intrinsic and accepted part of the Factoring process. This verification procedure is often the equivalent of an after-sales call and can therefore generate much goodwill on the part of your customers, if not more orders! Nonetheless, we do send out a letter on your letterhead notifying your customers of the services we offer you and it is always a valued contribution to the process if you advise your customers directly so that they are brought into the fold at an early stage.

This does happen, so it is good to anticipate this. If this occurs, payment should be sent immediately to Aberdeen. You should never deposit payments for invoices that you have already received payment on from Aberdeen. As a follow-up, we ask that you then notify your customer to send future payments to our address.

Good question! Remember, we are not acting as a Collection Agency, we are your Receivables department. We are mindful that your customers put bread on our table while doing the same for you. Our contact with your customers is, at all times, courteous and professional. We will never be rude to your customer, harass them in any way. We want to help build your business and would not do anything that is counter-productive to this.

As a matter of routine, we send out Statements on your behalf each month, showing your customers which invoices are outstanding. In addition, we closely monitor the invoices and will make calls or send emails to customers where invoices are overdue. We will also send out copies of invoices to your customers. In the event that all our efforts fail to generate payment, 90 days after the date of the invoice, it will be “charged back” to your company and you will be responsible to reimburse us for the amount of the initial advance, together with fees to date. This may be done out of your accumulated Reserves, or by the substitution of the old invoice with a new valid invoice. Of course, our monitoring and credit procedures are designed to minimize any incidences of delinquency.

We have no fixed policy on this and each situation is reviewed individually.

This is not like buying a shirt off the shelf! We discuss each client’s needs individually and will give you a proposal for your business. These are subject to negotiation and subsequent mutual agreement.

It applies to us as much to anyone – an invoice left to gather dust, will do just that. The longer the invoice remains outstanding, the less likely it is to be paid. We use our funds better by collecting on an invoice and re-investing them in a new invoice.

It is not difficult at all. Assuming that you do not have to contend with a contract termination date far in the future or high early termination fees, the actual process is simple and we will handle it all for you, subject to your authorization.