Frequently Asked Questions

Q - I’m a new business with little or no credit history. Can I still qualify?

A - Yes! We do not run a credit check on you personally or your business. We only run a credit check on your customers. This credit information on your customers is public and we will not contact them during the application approval process.

Q - Do we have to factor every invoice?

A - No, finance one, some or all of your invoices. The choice is yours. We recommend that you factor invoices as your cash flow requirements dictate. This will keep your fees to a minimum.

Q - Do I have to sign a long-term contract?

A - No, our contracts have no set term. You may try our factoring services for one or two months with no obligation to continue. If you are happy with our service and the factoring process then you may continue submitting invoices for funding (as long as you wish). Conversely, if you are unhappy with our service or if factoring is not right for you then you may discontinue factoring at any time without penalty.

Q - Do you have monthly minimum fees?

A - No, you are only charged a fee when you factor your invoices. Additionally, we do not have maintenance fees in order to keep your account active. If business is slow and you don’t have any invoices then you have nothing to worry about. You won’t be charged any fees. Conversely, if you don’t need any cash in a particular month then don’t factor any invoices - and you won’t be charged any fees.

Q - Do you have an application fee?

A - No, we absorb all costs of underwriting. This represents a significant cost savings for you and your business. This is our investment in you and your business!

Q - What is the difference between factoring and taking out a loan?

A - Instead of using your receivables as collateral, we buy your invoices outright. Since we’re not in the business of giving out loans, we can quickly approve your request for funds and keep you from adding any debt to your business.

Q - What invoices can be factored?

A - We cannot factor consumer invoices. We can only factor commercial (i.e. business to business) invoices. The invoices we will buy varies depending on the creditworthiness of your clients. Through public credit information and/or examining the payment history of your clients, we can determine whether or not they will be eligible for factoring.

Q - Why should I factor with Stonebridge instead of getting a bank loan?

A - Since we don’t have any restrictive requirements like a bank does, we have the freedom to work with you despite your cash flow, profitability, equity, and years in business. We can get you money in a fast, easy, and convenient manner that you’ll never find at a bank.

Q - How Much does it cost to factor?

A - Fees start at only 0.8% of the invoice amount. In fact, it can cost you more not to participate in these funding programs.

Consider this example: You have $100,000 of receivables on your books and $15,000 cash in the bank. You receive a purchase order and need $30,000 to fulfill the order and earn a 20% profit margin. Since you are short $15,000, you lose the order because you cannot pay the vendor and potentially miss a key opportunity. If you had a receivable credit line you could convert some of your outstanding invoices into $15,000 to fulfill the order. The cost may be 2%-3%, resulting in a 17%-18% profit margin and a satisfied customer!

Q - How long does it take to receive my first funding?

A - Approval can happen in as quickly as 2 business days and funding as soon as a few hours after your account is set-up and your invoices are received.

Q - Will my customers know that I have factored their invoices?

A - Yes. Many customers are already familiar with the factoring process and have worked with factoring companies before. Since good relationships with your customers are key, we operate transparently, with the highest level of customer service. We will never harass or be rude to your customers. Maintaining positive customer relationships is beneficial for all parties involved. We are only happy if your business is doing well.

Q - Does this make good business sense?

A - Yes! Many firms use factoring when cash flow is tight due to slow-paying clients or when traditional financing is unavailable or insufficient to fund growth.