Advantage

Factor, LLC

Copyright © 2004 by Advantage Factor, LLC. All rights reserved.

Frequently-Asked Questions
About Selling Invoices

1. How much does it cost me to sell an invoice?

2. Is there a lot of paperwork and hassle to get set up?

3. Once I am set up, is it time-consuming to sell an invoice?

4. Do I need good credit?

5. Is selling an invoice a complicated process?

6. What is my commitment or obligation?

7. Is selling an invoice like a bad debt collection service?

8. What control do I have over my cost of selling an invoice?

9. How do I get started?

Q:  How much does it cost me to sell an invoice?

A:  The fee is usually 3% to 5% for thirty days and increases by 2% to 3% for each fifteen-day block after that.  The time starts when the invoice is sold, not from the invoice date.

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Q:  Is there a lot of paperwork and hassle to get set up?

A:  No, there is only a simple application and a contract that outlines the terms.

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Q:  Once I am set up, is it time-consuming to sell an invoice?

A:  Not at all.  Most of the time our clients will simply fax us an invoice. We then have several options for quickly getting the cash delivered.  Ninety-nine percent of the time, the cash is in their hands within a few hours -- always within 24 hours.

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Q:  Do I need good credit?

A:  No, your customer is the one who actually pays the invoice.  If you have reputable customers, you can use your customer’s good credit to obtain financing and build your credit.  Some restrictions do apply.

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Q:  Is selling an invoice a complicated process?

A:  No, you initially receive a check for 75% of the invoice amount.  The remaining 25% is held in reserve or security until the day your customer pays the invoice.  That day, you receive a second check for the reserve, minus our competitive fee.  Nothing could be more simple.

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Q:  What is my commitment or obligation?

A:  There is no long-term commitment.  If you desire to only sell one invoice for a special financing need, then only sell one.  Submit as many or as few invoices in any dollar amount you wish whenever you need immediate cash.

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Q:  Is selling an invoice like a bad debt collection service?

A:  No, it is in your best interest to only sell invoices that you are confident will be paid promptly.  Keep in mind, the fee you pay is based on time.

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Q:  What control do I have over my cost of selling an invoice?

A:  As the fee is based on time and starts when you sell the invoice, it would cost less for you to hold the invoice until you believe it will be paid within 30 days.  For example, if your customer usually pays in 45 days, hold the invoice for 15 days before selling it.

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Q:  How do I get started?

A:  Fill out the online application or call John Thompson at Advantage Factor, LLC

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