Singing Up with a Factoring Company...Please HELP

The process of signing up is pretty straighforward. Provide them with the appropriate informtaion, sign all your paperwork (read it carefully to see what you're getting into), and you're pretty much ready to go. There shouldn't be and sign up cost, however you may be required to pay the UCC filing and release fee. A line of credit should not affect your approval. They will do a lien search to make sure noone else has filed against you. The factoring company will want to be in first position against your receivables. Hope this information helps.

 

Signing up for a factoring company should be easy! There are many factoring companies to choose from, some better than others. Make sure to do your research, recourse vs. non-recourse, reserve accounts vs. flat rate. Some programs work better for small companies, 1-10 trucks, while others work better for larger companies. You should be able to get set up in one day, and if it's a good factoring company you should haven't to spend a dime to get set up. The factoring company should pay for all set up fees to earn the carrier's business. Good luck with your search!

 

http://www.dos.ny.gov/corps/uccfaq.html

 

As for the UCC filing fee, some do, some don't. I think it's only $30. If they do have you pay for it, they'll often give you the choice of cutting a check or taking it out of your first factored invoice. What point are you at waiting for approval? Have you just submitted an application? If so, they need time to review it, along with any other information/documentation you have given them and figure the rate they want to offer you.