Frequently Asked Questions

Factoring is the purchase and sale of accounts receivable, represented by invoices, at a discount. See Factoring Diagram. An "account receivable," which is an asset on your books, is money owed to your company by your customer, as an account payable, 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."

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.

• 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 $20 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. You can avoid the 20 cent fax fee if you scan and upload your paper documents or computer word processing files, spreadsheats, Adobe PDFs, graphics files, etc., rather than faxing them to us.

• 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

• 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 Photon Funding, LLC, offers a Home Study Course which teaches all aspects of the factoring industry. Click here for more details.

• Current legal factoring documents:
• Factoring Agreement (Version 5.7)
• 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 & sign all 4 originals.

Proprietorships: sign before notary public
Corporations:

• President/CEO & Corp Secretary must sign, or
• President must sign before a notary
• Affix corporate seal
Limited Liability Companies (LLCs): Manager must sign before a notary public

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.

Yes. You will have to allow us to access your PC remotely so we can help. Here's how:

• Click this link to cause an email to be sent to us. Before sending the email, add the following to the body of the email under the pre-written text:
• Your name
• Your company name
• The date and the time range during which you would like assistance (we are on Pacific Time)
• Your phone number
• Install Teamviewer for personal use (normal installation, full access), which is both free and secure.
• Start Teamviewer just before the session is to begin
• Email your Teamviewer ID and Password to photonfunding.com