The Factoring Process

The service initiates when a factoring company buys invoices in exchange for immediate case, and then holds the invoices for collection until the invoices become due. As soon as a client completes a service or delivers the merchandise to his/her customer, the invoice is sent to the factor for funding. The factor will then provide an advance payment of 75 to 85 percent of the face value of the invoice, via wire transfer to the client’s bank account.  Once full payment is received from our clients’ customer (debtor), the factor returns the invoice payment balance minus the factoring fees.

STEPS

1. Your company delivers the merchandise, or products or services to your client and issues an invoice.
2. Your company assigns the invoice to be paid to Factorway.
3. Your client accepts your merchandise, product or service and the assignment of the invoice to be paid to Factorway.
4. Factorway funds your company for the merchandise, products or services sold to your client.
5. Your client pays Factorway and in turn Factorway releases the remaining percentage held in trust minus the fees charged to the client.