Frequently Asked Questions
Q. How do I get started?
A. Simply select the “Contact Us” link at the bottom of this page to view our contact information. You may also complete any of the Applications and submit them electronically. If you cannot reach us directly by phone, please leave a message, and your call will be returned within 24 hours.
Q. Do I have to sell the entire note?
A. NO. Our funding sources can purchase all or just part of the note you are holding. This allows us to tailor the purchase to meet your specific monetary needs.
Q. Will I be held accountable for the note after it is sold?
A. In most cases, the answer to this question is NO. When a note is sold the funding source typically assumes all collection responsibilities.
Q. What kinds of notes can be sold?
A. Global Funding Resource can facilitate the sale of notes, or income streams, grouped into six different categories: Business Based: Accounts receivable, Aerospace leases, Bankruptcy Chapter 11 reorganization plans, Bankruptcy receivables, Commercial contracts, Commercial deficiency portfolios, Commercial leases, Construction receivables, Equipment leases, Equipment timeshares (or “fractional ownership interests”), International receivables, Letters of credit, Medical receivables, Partnership agreements, Purchase orders, Sports contracts, Trade acceptance drafts, Vendor carryback paper, and Warehouse inventory lines.
Collateral Based: Aerospace notes, Automobile notes, Business notes, Collectibles notes, Equipment notes, Homeowner/condominium assessments, Marine notes, Mobile home notes, Private mortgage notes, RV/motor home/business vehicle notes, Tax lien certificates, and Tax deeds.
Consumer Based: Cemetery pre-need contracts, Certificates of deposit, Consumer contracts, Credit card charge-offs, Delinquent debt, Health and country club memberships, Inheritances, Trust advances, License impounds, Retail installment agreements, Student loans, and Timeshare/vacation club memberships.
Contingency Based: Commercial judgements, Commissions, Consumer judgements, Corporate charitable contributions, Franchise fees, License fees, Royalty payments (including mineral rights fees), and Sales revenue.
Government Based: Farm contracts and conservation reserve payments, Lottery winnings, and Tax refunds. Insurance Based: Annuities, Casino winnings, Corporate retirement plans, Funeral purchase assignments, Prizes and awards, Structured settlements/class action awards, and Viatical settlements.
Although Global Funding Resource specializes in selling specific kinds of income streams, we are certified and authorized to sell all of the above.
Q. Is there a minimum or maximum dollar amount of a note that can sold?
A. Typically, the answer is NO. Individual investors and funding sources have their own set of guidelines they have to follow, but only a few of them have set minimum and maximum dollar requirements. The answer to this question will vary depending on the type of income stream involved.
Q. Can you work with individuals who have “less than perfect” credit?
A. YES. Our funding sources specialize in supplying money where traditional financial institutions will not. They are very flexible in each individual situation.
Q. Do I need accounts receivable (Factoring) financing?
A. YES…if you are a new business. YES…if you can’t obtain traditional financing. YES…if you need operating capital. YES…if your company is growth-oriented. YES…if you want to put an end to your cash flow problems.
Q. How do I qualify?
A. Your acceptance is based on the creditworthiness of your customers, not you. Your customers must be another business. Your invoices must be valid for goods sold and delivered or services rendered (to your customer’s satisfaction).
Q. How does factoring differ from bank financing?
A. There are a number of favorable differences:
Factoring is based only on the accounts receivable. A client’s ability to raise cash by factoring is based on the total accounts receivable, rather than on traditional measures of financial strength and stability.
Factoring provides continuing cash flow without the requirement of periodic payments or interim payoffs. New sales continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.
Factoring gives a business increased access to cash as sales and receivables increase. There is no ceiling beyond which the factor must stop providing cash. The more sales a business makes, the more cash it can draw. The factor does not concentrate on the business’s debt/equity ratio to provide funds, as banks do.
Factoring offers a dependable, continuing source of cash without the necessity of making separate loan applications.
Factoring avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the business is run.
Factoring saves the business owner precious time waiting for a loan board to grant or deny his or her loan. Loan board’s decisions are influenced by many considerations, and the outcome is often unpredictable. With factoring, periodic delays and negotiations are eliminated, allowing the business owner time to do what he or she does best — run the business.
Q. Do factors offer any other services?
A. YES. Factors often offer help with accounts receivable administration. The client has the choice to maintain control of accounts receivable or hand it over to the factor to maintain. Often the factor can do a better job than the company’s in-house personnel can and at a comparable cost.
Q. How soon will I get my money?
A. With factoring there is initial set up time, usually 5 to 10 days. After your company is initially set up the first time, with a funding source, you can expect to receive your money with in 24 to 48 hours.
Q. When submitting my application, what other documents will I or my company need to submit?
A. All applications should include the following:
1. Completed application signed to authorize credit check on principal guarantor.
2. Complete A/R aging report.
3. Name page from articles of incorporation.
4. Copy of any current contracts.
Executing the application and forwarding the required information will expedite the process of qualifying your account.