The Factoring Process

Step One - Approval Process

The first step in factoring involves gathering certain information about the potential client and its customers. Certain documents such as the completed application, financial statements, tax returns, contracts as well as a few others will be needed. Once we receive this information and perform our due diligence, rates and advances will be determined.

Step Two - Establishing Factoring Account

Once the rates and advances have been determined, we will need to execute all appropriate agreements and documents, including the Accounts Receivable Purchase Agreement, Payment Letter, UCC-1 and Personal Guaranty. Once we have these executed agreements, the client may begin factoring.

Step Three - Factoring

After all of the initial paperwork has been completed, invoices can be funded in as little as 24 hours. The process of factoring is simple and fast.

  1. The Client presents the original invoice(s) to Prime along with a Schedule of Invoices to be factored (a schedule is just a list of all of the invoices being sold to Prime at that time).
  2. Prime confirms that the invoice is valid and that the work has been performed or the products have been received.
  3. Upon verification of the invoice, Prime will deposit or wire the advance directly into the client’s bank account (there is a $20 wire fee for each wire sent).
  4. When payment is received by Prime, the check is immediately deposited into its account, and applied to the appropriate invoice(s). On the Friday of the week in which the check is received, Prime will send out any reserve balance due to a client as a result of payments received during the week.
PF Funding, PF Funding LLC, and PF Funding Factoring