Service Description
If your company is engaged in business-to-business sales, you can ensure continuous cash flow by selling your commercial accounts receivables to IronStone Bank.
Factoring increases your liquidity without adding debt to your company's balance sheet. Because IronStone Bank conducts the credit screening process, you can
reduce your credit department's overhead in staffing, credit checks, telephones, supplies and equipment. Through our non-recourse program, we provide both
credit and risk management.
Operational Aspects
- Your customers' checks are remitted directly to us to ensure correct and timely posting. All payments are posted on the day they are received. You will be notified of collections via fax by the end of the business day.
- We provide a full-service credit and collections department. However, you are encouraged to participate in the collection process by coordinating with our efforts.
- Your relationship with your customers will not be adversely affected. You can feel confident knowing that all contact will be professional and courteous. Any account disputes or deductions will be communicated directly to you, so that you can first address things with the customer.
Features & Benefits
- Increased predictability of cash flow
- No minimum number of transactions or dollar volume
- Infinite use—use it as much or as little as you need. Charges are only incurred when you use it.
How To Get Started
To begin the factoring review process, you will need to provide IronStone Bank with:
- Completed factoring application
- Two years of financials for your business, personal financial statements and your most recent personal tax returns
- Your customer list, including name, address, telephone number and requested credit limit. If your accounts receivable are pledged outside IronStone Bank, include the name of the secured party
- A copy of detailed aging report
- Unless you are a sole proprietor, a copy of your Articles of Incorporation, partnership or proprietorship agreement
- Your last two quarters’ 941 tax forms with proof of payment
- Your annual sales volume, average size of invoice and number of active accounts
- An application fee, made payable to IronStone Bank
- A sample of your business invoice
The review process typically takes seven to ten days. We screen your new and existing customers for creditworthiness. Once
approved and invoices are verified, advance payment is immediately deposited in your company's IronStone Bank deposit account. IronStone Bank
then collects receivables and provides state-of-the-art accounting statements. The rate you are charged is determined by risk evaluation and volume projections.
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