Friday, March 4, 2011

Factoring Q&A

We recently sat down with our president, Jack Stieber. Jack is the President of our 32-year-old company and a veteran of financing options is a credit-tight world.

Q&A: What is factoring?
Jack: Factoring is the process by which a company and a third-party use receivables (unpaid invoices) as a leveragable source of income.

Q&A: Is this a legal practice?
Jack: Yes, it is and a legal and regulated source of legitimate cash flow for a company.

Q&A: How do I get the process started?
Jack: You seek the counsel of a reputable receivables firm like American Receivables.

Q&A: How soon can I get my money?
Jack: In as few as three days.

Q&A: Do I have to undergo any underwriting or any of the processes that banks put me through?
Jack: Yes, but it is a bit different—receivables companies actually investigate your customers to see if they are credit worthy.

Q&A: What about investigating me?
Jack: Yes, to some degree. We are going to do a character reference on you to see if you measure up as a potential customer first before we start the process on your customers.

We hope these few ideas get you starting to think about how you can finance your business. For more information, please give Jack or our team a call at 800-297-6652 or visit our website,

The American Receivable Team

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