What is factoring?
Factoring is the purchase of a business’s accounts receivable at a discount. It’s one of the oldest financing methods used by businesses to generate working capital.
How does factoring work?
An account is set up with Viva to sell invoices for goods or services sold and delivered. Rather than wait for the payment terms 30, 60 or 90 days you’ll receive cash within 24 hours of selling the invoice to Viva. When your customer makes a payment, they’ll send it to us. We will then deduct the initial advance you received and applicable fees, and rebate the balance to you, often called the reserve.
Will I continue to bill my customers as usual?
No. You will submit your invoices to Viva, from there Viva will handle the submission of the invoices and the collections process.
How would a customer know to send or redirect payment to Viva?
Your customer will be sent a notice of where to send the payment and your invoice will also have that information. This is called a notice of assignment.
Will Viva contact all my customers?
No, only the customers you choose to factor will be contacted. Each customer you want to set up will have to go through a credit check and quick set up process.
Am I required to factor invoices for all of my customers?
No.
What if I don’t want my customers to know that I am factoring?
Why wouldn’t you? Factoring is a very common financing strategy that is used by many business owners across multiple industries. Your customer is probably familiar with this financing method, and in many cases, prefer to have a Factor involved due to the structure a Factor brings to the equation.
Is there a required minimum or maximum factoring volume?
No, we custom tailor our solutions to each customers needs.
What does factoring cost?
There are many variables such as industry, volume, payment terms and account debtors etc. Contact us at any time to give you a rapid quote.
What amount or percentage of invoice will you advance?
There are many variables such as industry, volume, payment terms and account debtors etc. Contact us at any time to give you a rapid quote.
Who does the collections?
Viva’s collection experts will handle all collections on purchased invoices.
Do you have any geographical restrictions or industries you won’t factor?
No, as long as your customers are credit rated and pay in US Dollars we can provide factoring.
How can I keep track of invoices and payments?
You will have direct online access 24/7 to your reports using your very own unique User ID and Password.
What if a customer doesn’t pay an invoice?
You will be required to either buy back unpaid invoices, swap it out, or deduct the amount from your reserve funds until paid in full.
Do I have to sign a personal guarantee?
Yes, a guarantee will be required to affirm you will perform as per the terms and conditions of the agreement.
How long will it take to receive approval and funds?
At Viva our goal is to approve your file within 24 hours.
How do I apply?
To apply, call 1.915-859-8900 or simply click Apply Now.
