Account Receivables Funding

• Account Receivable Funding boosts your cash flow by providing an immediate advance of cash into your business against the value of your outstanding invoices.
• When you raise an invoice, we can release up to 95% of the value of that invoice within 24 hours with the remaining 5% being paid to you, less a small service fee, once we receive payment from your customer.
• Your business has access to ongoing cash flow funding linked to your sales so as your business grows so does the amount of funding available to you.
• We save you valuable management time by preparing statements, communicating with your customers, collecting payments for you and maintaining professional and detailed accounts of your transactions. This saved time can be spent driving business forward.
• You remain in control by working with a dedicated team who ensure your customers are as happy to deal with us as they are with you.
• By working with a Receivables Funder, it means that as well as a significant reduction in debtor days and improvement in cash flow, valuable management time can be spent driving business forward.
• By making use of a receivables funding facility you can benefit from improved profitability by taking advantage of discounts on bulk purchases and early payments with your suppliers.
• Our Factoring service provides a flexible supply of working capital giving you the time to realize your plans.
  

What Next?

If you would like to speak with one of our Account Receivable Funding specialists simply complete our contact form.

Q&A

Is accounts receivable funding a new financing option?
Accounts receivable funding is one of the oldest forms of financing. It has been around in one form or another for more than 4,000 years. Until the mid 1980s, most people thought accounts receivable funding was only used in the textile and garment industries. Today, accounts receivable funding is a widely used and viable financing solution for all types of businesses that extend credit terms to their customers.

How can accounts receivable funding help my business?
By providing an immediate source of cash flow for your company. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating, and more.

How is accounts receivable funding through FAMILYLENDING.CA different than accounts receivable financing from a bank?
When making a funding decision, we focus on the creditworthiness of your customers while banks will focus on your company's financial history and cash flow. Best of all, we will have a quick funding decision, while banks may take weeks-even months-to approve a loan.

Will my company be eligible for accounts receivable funding if it has a bank loan or line of credit?
If a bank has a lien on your company's accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien in favor of FAMILYLENDING.CA's investors. This is a common occurrence, most banks will accommodate the request, but we must know this information in advance.

My company owes back taxes. Can I still apply for accounts receivable funding?
Yes, Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can discuss the payoff of your back taxes or a lien subordination with the government.

I have had a past bankruptcy, is accounts receivable funding still an option?
Yes, we will still consider your application even if you have credit problems or a past bankruptcy.

What information will FAMILYLENDING.CA need from my company to begin the accounts receivable funding process?
Along with the application, be sure to include your company's most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or DBA filing, a master customer list, copy of your ID (i.e. driving license or passport) and a sample invoice with sample supporting documentation (i.e. Proof of Delivery, Order, Contract etc.). For start ups, please also submit a business plan and projected sales forecast, and an owner/officer history and profile.

Which customers would be good candidates for accounts receivable funding?
We look to fund all of your customers. First, we need their names, addresses, phone numbers and the amounts of credit desired. This will save you time when submitting invoices to us. Also, anytime you obtain new customers, fax the same information to us, and we will check them out for you.

How long does it take to receive the first funding?
The initial funding takes between 1-3 business days after we receive your signed contract. If you wish, you can send your invoices to be funded with the signed contract. After the initial funding, your company can receive funds usually within 24 hours after verification.

Does FAMILYLENDING.CA Investors purchase outstanding invoices?
Yes. For the first funding only, we can purchase your invoices from your outstanding accounts receivable subject to verification.

Are accounts receivable funding fees tax deductible?
Accounts receivable funding fees are an expense and should be treated as such.

Does FAMILYLENDING.CA Investors verify invoices with my customers?
Invoice verification is an essential, and accepted, part of funding. Because factors verify invoices with customers, they can tell clients if there is a customer service problem right away. A non-factoring client may not notice the problem until the invoice becomes past due. By that time, it may be too late to save the account. For the process to run smoothly, we suggest that you call your customers or send them a letter in advance to let them know that you are now working with FAMILYLENDING.CA. If you need assistance in writing the notification letter, we will be happy to provide you with a sample letter.

What should I do if my customer mistakenly sends the payment to my company?
This might happen, especially with the first invoice. If this occurs, the check must be sent to FAMILYLENDING.CA's Investor immediately. Your company should never deposit invoice checks since FAMILYLENDING.CA is also providing you with A/R management services. We also ask that you notify your customer to pay us directly in the future.

How can I be certain that FAMILYLENDING.CA's Investors will treat my customers well?
The last thing we want is for you to lose a customer. FAMILYLENDING.CA Funding affiliates are not collection agencies. We will never harass your customers for money. Maintaining your customers' goodwill and confidence are of utmost importance to us! In the last year FAMILYLENDING.CA's affiliates collected $5 Billion in accounts receivable, we have extensive experience in the management of our customers Accounts Receivable.

So what happens if one of the accounts has invoices that are not paid as agreed?
As a last resort, we have affiliates which are experienced in the collection process.

A customized program to fit individual business needs; designed to deliver the power of 3rd party intervention while allowing our clients to maintain complete control