The factoring company will pay you any remaining amount left over minus the factor fee<\/li>\n<\/ul>\n\t\t\t\t\t\t\t\t\t\tHow much does factoring receivables cost?<\/h4>\n\t\t\t\t\t
The factoring fee can range between 1% to 5% depending on the specific industry, risk, volume, and how long the invoice takes to pay.\u00a0<\/p>\n\t\t\t\t\t\t\t\t\t\t
What types of businesses and industries use invoice factoring?<\/h4>\n\t\t\t\t\t
Almost any type of business-to-business company can be factored.\u00a0 A few examples are trucking, manufacturing, staffing, and service industries.\u00a0 The specific details of the transaction make it likely or less likely to be a factorable opportunity.<\/p>\n\t\t\t\t\t\t\t\t\t\t
Will factoring my invoices look bad to my customers?<\/h4>\n\t\t\t\t\t
The quick answer is no. This is a cash flow method that has been around for centuries.\u00a0 Often times, customers see your company partnering with a factoring company as a growing opportunity.\u00a0 A business\/factoring company partnership can allow the customer to see the strength in your business as the factoring company thought your business was solid and not a lending risk.<\/p>\n\t\t\t\t\t\t\t\t\t\t
What do I need to start the factoring process?<\/h4>\n\t\t\t\t\t
Once you fill out an application, we can assess the best program parameters for your business.\u00a0<\/p>\n\t\t\t\t\t\t\t\t\t\t
How long does the approval and setup process take?<\/h4>\n\t\t\t\t\t
The preliminary approval and setup process typically takes 24 – 48 hours. Steelhead Finance makes every effort to setup and fund the account as quickly as possible.<\/p>\n\t\t\t\t\t\t\t\t\t\t
How quickly will I receive funding?<\/h4>\n\t\t\t\t\t
We have a variety of funding options to fit the needs of your business.\u00a0 An expedited wire will get you funds the same day based on funding deadlines.<\/p>\n\t\t\t\t\t\t\t\t\t\t
What is the typical factoring advance rate?<\/h4>\n\t\t\t\t\t
Factor advances will vary and can range between 70% and 97%.<\/p>\n\t\t\t\t\t\t\t\t\t\t
How will the money be sent to me?<\/h4>\n\t\t\t\t\t
Steelhead Finance offers a variety of funding options that include a bank wire, ACH, fuel card transfer, and money code.<\/p>\n\t\t\t\t\t\t\t\t\t\t
What is the difference between recourse and non-recourse factoring?<\/h4>\n\t\t\t\t\t
Recourse factoring is more common and is structured where your company will buy back the invoice if the factoring company is unable to collect payment.\u00a0 Non-recourse factoring means the factoring company assumes most of the risk on the customers associated with that program.\u00a0 There are usually stipulations that go along with non-recourse programs in order to comply.<\/p>\n\t\t\t\t\t\t\t\t\t\t
Will I qualify for accounts receivable factoring if my credit isn’t great?<\/h4>\n\t\t\t\t\t
Your credit history does not typically affect your ability to factor.\u00a0 Factoring decisions are based on the credit history of your customers since they are the ones responsible for payment of the invoices.<\/p>\n\t\t\t\t\t\t\t\t\t\t
Can I utilize more than one factoring company?<\/h4>\n\t\t\t\t\t
No. Your primary factoring company will need a first position UCC.\u00a0 This means that they have legal rights to collect payment from your customers after they advance you the funds from your accounts receivable.\u00a0<\/p>\n\n","protected":false},"excerpt":{"rendered":"
LEARN MORE FACTORING FAQS What is invoice factoring? Invoice factoring is a finance solution to improve cash-flow where a business sells the receivable to the factoring company at a discount in exchange for immediate working capital. The factoring company then collects payment directly from your customer. How does invoice factoring work? When you “sell” your…<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":757940,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_wp_rev_ctl_limit":""},"yoast_head":"\n
Factoring FAQ - Steelhead Finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Factoring FAQ - Steelhead Finance\" \/>\n<meta property=\"og:description\" content=\"LEARN MORE FACTORING FAQS What is invoice factoring? Invoice factoring is a finance solution to improve cash-flow where a business sells the receivable to the factoring company at a discount in exchange for immediate working capital. The factoring company then collects payment directly from your customer. How does invoice factoring work? When you “sell” your…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/\" \/>\n<meta property=\"og:site_name\" content=\"Steelhead Finance\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-06T21:41:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/steelheadfinance.com\/wp-content\/uploads\/2022\/06\/Steelhead-Finance-OG.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"627\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/\",\"url\":\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/\",\"name\":\"Factoring FAQ - Steelhead Finance\",\"isPartOf\":{\"@id\":\"https:\/\/steelheadfinance.com\/#website\"},\"datePublished\":\"2022-02-10T16:49:42+00:00\",\"dateModified\":\"2022-06-06T21:41:17+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/steelheadfinance.com\/about\/factoring-faq\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/steelheadfinance.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"About\",\"item\":\"https:\/\/steelheadfinance.com\/about\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Factoring FAQ\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/steelheadfinance.com\/#website\",\"url\":\"https:\/\/steelheadfinance.com\/\",\"name\":\"Steelhead Finance\",\"description\":\"Transportation Freight Factoring Company\",\"publisher\":{\"@id\":\"https:\/\/steelheadfinance.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/steelheadfinance.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/steelheadfinance.com\/#organization\",\"name\":\"Steelhead Finance\",\"url\":\"https:\/\/steelheadfinance.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/steelheadfinance.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/steelheadfinance.com\/wp-content\/uploads\/2022\/06\/Steelhead-Finance-OG.jpg\",\"contentUrl\":\"https:\/\/steelheadfinance.com\/wp-content\/uploads\/2022\/06\/Steelhead-Finance-OG.jpg\",\"width\":1200,\"height\":627,\"caption\":\"Steelhead Finance\"},\"image\":{\"@id\":\"https:\/\/steelheadfinance.com\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Factoring FAQ - Steelhead Finance","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/steelheadfinance.com\/about\/factoring-faq\/","og_locale":"en_US","og_type":"article","og_title":"Factoring FAQ - Steelhead Finance","og_description":"LEARN MORE FACTORING FAQS What is invoice factoring? Invoice factoring is a finance solution to improve cash-flow where a business sells the receivable to the factoring company at a discount in exchange for immediate working capital. The factoring company then collects payment directly from your customer. How does invoice factoring work? When you “sell” your…","og_url":"https:\/\/steelheadfinance.com\/about\/factoring-faq\/","og_site_name":"Steelhead Finance","article_modified_time":"2022-06-06T21:41:17+00:00","og_image":[{"width":1200,"height":627,"url":"https:\/\/steelheadfinance.com\/wp-content\/uploads\/2022\/06\/Steelhead-Finance-OG.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/steelheadfinance.com\/about\/factoring-faq\/","url":"https:\/\/steelheadfinance.com\/about\/factoring-faq\/","name":"Factoring FAQ - Steelhead Finance","isPartOf":{"@id":"https:\/\/steelheadfinance.com\/#website"},"datePublished":"2022-02-10T16:49:42+00:00","dateModified":"2022-06-06T21:41:17+00:00","breadcrumb":{"@id":"https:\/\/steelheadfinance.com\/about\/factoring-faq\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/steelheadfinance.com\/about\/factoring-faq\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/steelheadfinance.com\/about\/factoring-faq\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/steelheadfinance.com\/"},{"@type":"ListItem","position":2,"name":"About","item":"https:\/\/steelheadfinance.com\/about\/"},{"@type":"ListItem","position":3,"name":"Factoring FAQ"}]},{"@type":"WebSite","@id":"https:\/\/steelheadfinance.com\/#website","url":"https:\/\/steelheadfinance.com\/","name":"Steelhead Finance","description":"Transportation Freight Factoring Company","publisher":{"@id":"https:\/\/steelheadfinance.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/steelheadfinance.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/steelheadfinance.com\/#organization","name":"Steelhead Finance","url":"https:\/\/steelheadfinance.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/steelheadfinance.com\/#\/schema\/logo\/image\/","url":"https:\/\/steelheadfinance.com\/wp-content\/uploads\/2022\/06\/Steelhead-Finance-OG.jpg","contentUrl":"https:\/\/steelheadfinance.com\/wp-content\/uploads\/2022\/06\/Steelhead-Finance-OG.jpg","width":1200,"height":627,"caption":"Steelhead Finance"},"image":{"@id":"https:\/\/steelheadfinance.com\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/pages\/758225"}],"collection":[{"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/comments?post=758225"}],"version-history":[{"count":0,"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/pages\/758225\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/pages\/757940"}],"wp:attachment":[{"href":"https:\/\/steelheadfinance.com\/wp-json\/wp\/v2\/media?parent=758225"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}