The Account Approval Process
A factoring company will investigate a few things about your business and you in order to approve an account. They will be researching public databases to verify the information that you’ve provided. In general all factoring companies will need to verify and review the following information about your business:
- Is your company is properly licensed, certified, currently insured for your industry?
- Are your invoices accurate?
- Are your customers credit is worthy? (Your factoring company is banking on them to pay.)
- Are your invoices are clear of liens? If it is discovered your company has liens from other finance companies or banks, federal and state tax liens, or lawsuits and judgments against it, this may hurt your ability to find a company that will factor your invoices.
- Is your company is free of legal and tax issues?
- Is there any evidence of criminal activity by you the company owner or by your company officers?
Account Approval at Steelhead Finance
In order to get the procedure started and moving along, it is recommended you get all your records organized before starting the application process. At Steelhead, we need to verify the following:
- Are you invoicing more than $5,000 a month?
- Are you working with more than one customer?
- Do your customers pay your invoices in less than 60 days?
- Your completed and signed Application has been returned to our office with the following.
- Invoice Aging Report
- Certificate of Incorporation or LLC Operating Agreement
- List of customers you desire to factor.
- Latest IRS 941 (if you have employees)
- Copy of drivers license from all corporate signing parties
To move the process along quickly get your business documents organized and on hand throughout the approval process. Stay in contact with your business development representative throughout the process. It’s amazing how fast we can approve an account, when we get complete and accurate information from you. If you have questions or concerns about any of the above information that we’re investigating, ask your Business Development Consultant. Being upfront about any problem or concern helps us look for solutions and get you an answer about account approval quickly.
Please know that delays in the setup can be caused by circumstances outside your control. If your bank, insurance company, state licensing agency, or other entity don’t get back us quickly, it slows things down. If you would like give us a call, we can keep you updated as we progress through your approval process.