Factoring is a process in which you assign your accounts receivable to Applied Capital and your customer pays Applied Capital directly. We advance a percentage of the face value of the invoice. Typically, advance rates range from 70% to 90%. Our fees for the financing usually range from 1% -5% of the face value of your invoices for a 30-day period.

With Applied Capital, you are not required to factor all of your invoices and we do not require a minimum monthly volume for financing.

Process

• Contact us and tell us about your business and your financing needs.
  
  
• Once we determine how we can help you, we will offer a proposal of terms for your consideration. Only after you see what we can do for you, are you asked to complete our application.
  
  
• We jointly execute some legal documents outlining the business relationship between us.
  
  
• You contact your customers that you will be submitting for Accounts Receivable Factoring with Applied Capital. Let them know that their account has been assigned to Applied Capital, and that Applied may contact them regarding your invoices from time to time (so we can fund you faster!).
  
  
• You provide us with contact information and trade references on your customers. We will do the credit analysis for you.
  
  
• We send an Assignment of Accounts Receivable letter to your customer, indicating that the payee on their account should be changed to Applied Capital and that checks should be mailed to a lockbox we will set up for you (it's an automated processing facility to speed the processing of your clients payments).
  
  
• When you are ready to get an advance against some invoices, you fax copies of the invoices to us, along with a request for funding.
  
  
• We verify the invoices with your customers and wire transfer 70% -90% of the Invoice Face Value to your bank account, typically on the same day as the verification.
  
  
• Typically, we take our initial fee out of the advance to you (which covers the first 30 days of financing). If your customer pays within 30 days, no additional fees are due. If the customer pays in over 30 days, we pro-rate the initial fee on a per-day basis through the date of collection.
  
  
• When we receive payment from your customers, we wire transfer the remaining balance to you each week.