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Alpha Factoring Corp is a financial services company specializing in factoring, which involves purchasing accounts receivable from businesses to provide them with immediate cash flow. This service helps businesses improve their liquidity by converting outstanding invoices into working capital, allowing them to focus on growth and operations rather than waiting for payments from clients. Alpha Factoring Corp typically serves small to medium-sized enterprises across various industries, offering flexible solutions tailored to the specific financial needs of their clients. The company is known for its efficient processing, competitive rates, and strong customer service, making it a valuable partner for businesses seeking to enhance their cash flow management.
Factoring, also known as invoice factoring, is a financial transaction where a business sells its accounts receivable (invoices) to a third-party company, called a factor, at a discount. This process provides the business with immediate cash flow, which can be crucial for managing expenses and fueling growth.
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Factoring fees generally range from 1% to 5% of the invoice value, depending on various factors like the creditworthiness of customers and the volume of invoices factored. With Alpha Factoring we strive to give the best rates possible.
Initial setup may take a few days to weeks, but once established, funding can often occur within 24-48 hours of submitting invoices.
The customer pays the full invoice amount directly to the factoring company, usually within the invoice terms (e.g., 30, 60, or 90 days).
Payments are typically made through electronic bank transfers. Advances are often disbursed within 24-48 hours after invoice approval. Final settlements are made shortly after customer payments are received.
For faster access to funds, some factoring companies offer wire transfers, although this may incur additional fees.
Automated Clearing House (ACH) payments are another common method, offering a balance between cost and speed. Typically, ACH payments take 1-3 business days to process.
Payments can be received at the end of the term with cheques from the client or on occasion cheques received from invoiced companies that has been assigned to Alpha Factoring (Cheque endorsement).
Cheque endorsement involves the customer (payer) writing a cheque to the business (payee), who then endorses this cheque over to the factoring company (third party) to settle the amount owed. The factoring company processes the cheque. This involves verifying the endorsement and depositing the cheque in our account.
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