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Pre-Qualifying Application
An account representative will review your inquiry and follow up to discuss your Pre-Qualification App.
Below are some quick comments on businesses that unlikely will qualify for factoring:
- Businesses that do not have purchase orders or work authorization by account debtor.
- Business that invoice prior to completing delivery of product or services. (Pre‐billing)
- Businesses that do not get sign offs for services rendered or proof of delivery.
- Businesses that sell once a year to a customer, has non‐recurring business with accounts, or has cross‐aged aging of receivables. (Perhaps a spot factor may be more interested in this type of client)
- Businesses that have SBA loans that are encumbering business assets, and receivables were part of the borrowing base. (Must be subordinated or loan paid off to factor a/r)
- Business that have tax liens and no payment plan in place. (IRS will normally subordinate if there is a payment plan in place)
- Businesses that sell to small non‐credit worthy clients or non‐commercial accounts.
- Businesses that sell with contingent clauses, ongoing chargebacks, or recurring dilution.
