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What is the Process?
First, you complete a simple application and provide some credit information and history for review and approval, in order to establish your Factor/Client relationship with Foundation Bank.
Once this step is complete and you have a signed contract or agreement, we begin to purchase your accounts receivables (invoices) and give you a cash advance for the purchase. This advance can range anywhere from 80% up to 90% of the invoice total. The advance percentage amount is determined through the credit review and spelled out in the signed agreement. The difference (reserve) is held until after the invoice is paid. You are charged a factoring fee (this fee is also determined through the credit review and spelled out in the signed agreement). The fee amount varies based on the number of days the invoice is outstanding until payment. On the day of the purchase, we mail the invoice to your customer, with notification of the invoice assignment to Foundation Bank. We follow up for payment in a professional manner to make sure payment is not delayed. After the invoice is paid, you receive the remainder of the cash, minus the factoring fee, from the sale of that receivable (invoice).
