Frequently Asked Questions

Is accounts receivable funding a new financing option?

Accounts receivable funding is one of the oldest forms of financing. It has been around in one form or another for more than 4,000 years. Until the mid 1980s, most people thought accounts receivable funding was only used in the textile and garment industries. Today, accounts receivable funding is a widely used and viable financing solution for all types of businesses that extend credit terms to their customers.

How can accounts receivable funding help my business?

By providing an immediate source of cash flow for your company. You can use this cash to provide working capital, meet payroll, pay taxes, replenish inventory, increase advertising, purchase equipment, improve your credit rating and more.

How is accounts receivable funding different than accounts receivable financing from a bank?

When making a funding decision, we focus on the creditworthiness of your customers, while banks focus on your company’s financial history and cash flow. Plus, since accounts receivable funding is not a loan, there is no debt on your company’s balance sheet. Best of all, we can make a quick funding decision, while banks may take weeks – even months – to approve a loan.

Will my company be eligible for accounts receivable funding if it has a bank loan or line of credit?

If a bank has a lien on your company’s accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien in our favor. Because this is a common occurrence, most banks will accommodate the request, but we must know this information in advance.

My company owes back taxes. Can I still apply for accounts receivable funding?

Tax problems are handled on a case-by-case basis. Please let us know immediately so that we can discuss the payoff of your back taxes or a lien subordination with the IRS.

I have had a past bankruptcy. Is accounts receivable funding still an option?

Yes, we consider your application even if you have credit problems or a past bankruptcy.

What information will I need to provide JC Funding, Inc. to begin the accounts receivable funding process?

Along with the completed/signed application, be sure to include your company’s most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or DBA filing, a master customer list and a sample invoice so we can see the term you provide. For startups, please also submit a business plan and projected sales forecast, and an owner/officer history and profile.

Which of my customers would be good candidates for accounts receivable funding?

In most cases, you’ll be able to fund your credit-worthy customers. When you give us your customer list, including name, address, phone number and the amount of credit desired for each, we will let you know which customers are eligible for funding. Also, anytime you obtain a new customer, fax the information to us and we will check them out for you.

Can you have only a portion of your company’s invoices purchased?

Absolutely, but remember that higher volumes result in more competitive rates. Terms become especially attractive when larger numbers of invoices are issues to a larger pool of customers.

How long does it take to receive the first funding?

The initial funding usually takes between 1-3 business days after we receive your signed contract and the invoices are verified. After the initial funding, your company will usually receive funds within 48 hours after verification which is your need.

Are my outstanding invoices able to be purchased?

Yes, your current outstanding receivables can be purchases as part of the initial funding so long as the accounts can be verified and the customer is credit-worthy.

Are accounts receivable funding fees tax deducible?

Most CPA’s agree that accounts receivable funding fees are an expense and should be treated as such. Consult with your accountant.

Will my invoices be verified with my customers?

Invoice verification is an essential, and accepted, part of funding. The invoices are verified to ensure their validity and that there are no offsets or issues that may reduce the expected payment. We have verification procedures that ensure that the process is completed quickly and seamlessly.

What should I do if my customer mistakenly sends the payment to my company?

Checks received by our Clients for funded accounts MUST be sent in immediately. Your company should never deposit checks that are from customers who are being funded. Before we fund a customer, that customer will be notified that payments must be remitted to the funding source. Your customer’s obligation to pay for the invoices funded will not be released until we have received their payment. Payments deposited by you for funded invoices will not release their obligation.