FAQ

What is "Factoring"?

Factoring is the purchase and sale of accounts receivable, represented by invoices, at a discount. An "account receivable" is money owed to your company by your customer for goods sold and delivered and/or services performed. The "discount" is the face value of the invoice (100%) minus the advance rate paid to you by the factoring company. Since we advance 80%, the discount is 20%. However, you are entitled to a portion of the discount depending upon the timeliness of collection, in the form of a "Rebate."

How do you handle problematic invoices?

Invoices become problematic if they become older than 90 days, are disputed by your customer, or your customer mistakenly pays you. Therefore, problematic invoices represent money you owe back to us, which must be repaid either from your unpaid rebates, all or part of advances regarding new transactions, or by some other means.

Explain your factoring agreement

• It is flexible
You can factor when you need to, but you can't inconsistently factor and not factor invoices for the same customer. We call this the "Rule of Reason," because your customers will set us up as the payee and will become angry if you attempt to turn that on and off. So, pick the customers you want to factor and factor all their invoices.
• No initial setup fees
• No early termination fee
• No minimum requirements
• Each daily batch or group of invoices is one transaction
• We charge $25 for each wire transfer and $.20 (20 cents) for each invoice backup document fax page we receive, which is the exact cost I-Fax® charges us. There is no charge if you scan and upload your paper documents or computer word processing files, spreadsheats, Adobe PDFs, graphics files, etc.

Explain "Paperless Factoring"

• Our partner Equifax®, an online notary, will authenticate your identity when you apply
• You will electronically sign all legal documents (eg., factoring agreement
• Invoices are either created on our website with our exclusive software or uploaded from Quickbooks®
• You will either fax or upload your backup documents
• All communications is handled by email, SMS (cellular text messages) and web pages
• Therefore, all information and documentation regarding the factoring process is in digital form

Do you deal with Brokers?

• Commissions
Yes. Brokers are paid 1% of the amount a referred client factors when the client is funded, rather than after collection, which is the industry standard, as long as the client continues to factor.
Fillable-Faxable Client Registration Form.


• The $199.95 Home Study Course for Factoring Brokers
National Factoring Academy, a division of 21st Capital Corp, offers a Home Study Course which teaches all aspects of the factoring industry. Click here for more details.

Where do I find your documents?

• Current legal factoring documents:
• Factoring Agreement (Version 5.6)
• Resolution to Factor [Corporation & LLCs] (Version 2.4)
• Guaranty (Version 3.4)



• Factoring US Govt Invoices:
  
• Assignment of Contract Proceeds
  This document is required by the Federal Acquisition Regulations. Fill it out on your computer monitor. Press the tab key to move from field-to-field. Print 4 originals.
  
  • If your organization is a corporation, affix the corporate LLC seal to all four copies where indicated. The corporate president and secretary LLC manager must sign all 4 copies. Otherwise, the one signer's signature must be notarized on all 4 copies.
  • If your organization is an LLC (limited liability company), the manager of the LLC must sign the document and his/her signature must be notarized on all 4 copies.
• Corporate Resolution in lieu of corporate seal
  If your organization is a corporation and you are unable to affix the corporate seal to the Assigment of Contract Proceeds, the corporate secretary must fill in the above corporate resolution, sign it and send a signed original to the contracting officer.
  
  

Do I mail my own invoices to my customers?

No. We mail all invoices.

• Since factoring is a purchase of your invoices and not a loan collateralized by your invoices, your invoices must be paid to us, and not to you.
• Our invoice form contains special assignment language required by the Uniform Commercial Code (UCC).
• We mail all invoices to our clients customers. If they were also to receive invoices from our clients, they would have two (2) invocies, and become confused. This will slow down the payment process and increase your factoring cost.
• Receipt of payment by you is a breach of the factoring agreement.
• We mail all invoices using our templated invoice form.

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Smartphone Invoice Factoring - Incredible!

Can you imagine creating invoices online and factoring directly from your smartphone? Amazingly, our mobile site is smartphone optimized and has virtually all the functionality of our classic extranet site, with a few exceptions, such as, Quickbooks integration & document uploading. Visit our mobile site by pointing your smartphone browser to www.21stcapital.com or just focus the camera in your QR enabled phone on the QR Code, above.

HTML5 Video Demos Learn All Aspects of Our Unique Invoice Factoring System

Subject	Length
Extranet Overview (Coming Soon)	N/A
Online Invoice Creation	10 Min
Quickbooks Factoring Integration (Coming Soon)	N/A
Accounting Adjustments (Coming Soon)	N/A
Electronic Timesheets for Staffing Firms (Coming Soon)	N/A
Invoice Approval (Coming Soon)	N/A
Backup Documents - Virtual Filing Cabinet (Coming Soon)	N/A