Any business that invoices another business or government for goods or services has accounts receivable that can be factored. The majority of factoring companies work with the broker network. This network consists of private individuals and companies that represent many factors. A broker will conduct an interview with you, help determine your business s needs and match those needs with a factor best suited to meet them. Again, your broker can best match you and your needs.
Some factors require financial statements, tax returns and other financial information.
Also, some require term contracts and set monthly or annual invoice amounts. Most brokers will find a factor that is flexible, with no term contracts or guaranteed amounts. These same factors offer only a minimum of paperwork. They don t like it either. Once a broker sets up the paperwork, he or she will establish direct communication between you and the factor.