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Countersignature factoring agreement

you hey guys thanks for tuning in it's Hussein here CEO of diversified funding services and in episode 2 we're going to talk about what it is that we actually do here at diversified funding services again as we mentioned in the previous video where an invoice factoring company based here out of Fayetteville Georgia and we're going to talk to you a little bit about what it is that we actually do which is factored receivables so we're gonna talk about what is factoring we're going to talk about why somebody factors and kind of give you a little sneak peak and show you the process here at diversified funding on how it is that we go ahead and go about the factoring process from the time that our client submits the invoice to us to the advance to the monitoring of the receivables and the invoices to when it ultimately collects and what all of that entails so hope you guys find this video informative again if you do we'd appreciate a like we'd appreciate a subscribe button wherever it appears here on the video and we really just hope that you are that you enjoy this so let's get into it so what's factor essentially factoring is the sale of an invoice from a company to a third party like factor like me a diversified so why does one typically choose the factor that's ultimately a decision that every business owner kind of comes to on their own for the most part at times it could be that you're sitting there and you need this working capital because you need to meet obligations you need to meet the payroll and you need to pay the bills and you got obligations that you need to meet and you're looking at your aging and you're saying hey wait a minute here are some open invoices and I've done everything on my end I've delivered the goods I might you know the services have been rendered but now you're sitting there you're sitting there for 30 45 60 sometimes 90 days to get paid on this and this is where factoring as a tool becomes a great asset to your company whether it's to relieve that pain threshold of not having to cash flow or whether it's to grow the company and expand the company you might have taken an order and that orders extremely large you're not able to fulfill it because you don't have this working capital on hand however you're looking at your aging and you're saying man if I could just get these checks in we'd be able to go ahead and fulfill that order and again that's where factoring kind of works so what's the process like the processes guys for the most part pretty quite simple you run your business just like you would any other day you take your orders you fulfill your orders you deliver your goods you provide service and at the end of the day you hand over an invoice to your customer and your customer then has a due date whether it's 30 45 60 90 days at the same time what you would do if you were one of our factoring clients is you would take that exact same invoice make a copy of it of course provide the factor with any backup documentation as well so you want to provide me with a copy of an invoice a purchase order a timesheet if you're in the staffing industry a bill of lading whatever it is that you can submit to your factor that lets them know hey this is everything you're going to need when you go to verify that invoice or those invoices a factor would then receive from you what's called a schedule or a batch in most shops and including here at diversified funding you will have a point of contact you will have an account executive a relationship manager that will be your go-to point of contact this individual will deal with you on a day-to-day basis from the funding to the credit monitoring and decision-making to the collection monitoring to the online reporting and basically is an extension of your back office but we'll get to that in a couple of minutes so again you submit these invoices to the factor your account executive would then go ahead and take those receivables upload it into the software and then verify those receivables with your customers account payable Department typically it's just a confirmation and a verification just wanting to know that they're happy with the product they're happy with the goods they're happy with the services that the invoice matches what they're showing in their system and that the amounts match and that it's approved for payment when those payments become due once that's verified once that's confirmed you will receive typically either an ACH or wire from us your choice and that's pretty much it as far as the funding side while we wait for that invoice to mature and for that payment to be cut your account executive will deal with you on a day-to-day basis this person is there to help you with any new orders that you're getting and you want to go ahead and make sure that you're shoving to a credit worthy customer your Account Executive is going to help you make that decision let you know hey this new customer that just placed an order that's a really big amount they're creditworthy go ahead we're willing to factor that receivable they're going to help you with the back-office as a business owner you want to be out there and you want to be hustling and you want to be growing your company and doing sales our Account Executives we're an extension of your back office we monitor those receivables we're not a collection agency we're calling on behalf of your company we act no different than if you had somebody staffed on employed on your staff that was making a call when those invoices become due once the receivables do become due they'll go ahead and they'll scratch that check and they'll remit that payment to the factor solo remit that payment to me I will go ahead and take those checks and go ahead and apply it to those invoices that that check is paying on you'll be able to get an online report that will show you the check number an image of the check the amount that was applied to the check and if there were any overages or dilutions on those checks after that you will get back what's called your reserve and your reserve is simply the difference between what I originally advanced you - my fee so to make it simple if we bought an invoice for $100 and I gave you $80 today and you had $20 sitting in there and let's just say that the fee was $2.00 when the payment came in and I charged my $2.00 you'd get back $18 that $18.00 is what's called the reserve and that's pretty much the process guys from the time that it originates to you getting it to the factor to your account executive dealing with your account on a day-to-day basis to the collection monitoring - when ultimately your debtor remits payments - the factor and apply it and give you back the reserved report so I hope it was informative I hope it was a little bit educational again if you guys have any questions our phone number is going to pop up somewhere on this screen now please feel free to give us a call again if you found the video informative give it a like give it a subscribe and we look forward to bringing you more videos and thanks for tuning in