Frequently Asked Questions

Factoring is selling invoices to a third-party factoring company at a discount. Factoring is a financial service, sometimes referred to as accounts receivable financing or invoice financing.
Factoring provides you cash for working capital. You don’t have to wait the normal 30 to 90 days to convert your receivables to cash. Also, you can focus on operating your business without worrying about the collection of receivables.
Factoring invoices on a “recourse” basis means that the client is ultimately responsible for payment if a customer doesn’t pay. Factoring invoices on a “non-recourse” basis means that the factoring company assumes the credit risk of the customer (usually at higher rates), thereby protecting the client from possible credit loss. In order to keep your fees lower, we normally provide recourse factoring. However, we also provide non-recourse factoring if necessary.
Since accounts receivable factoring fees are a business expense, they are deductible. Please consult your tax consultant for your particular situation.
No. we don’t have an application or start-up fee.
We process your application; complete the required paperwork; and fund your first invoices within 3 to 5 business days of receiving your application and necessary documents. Some clients take longer, and some less. We usually provide preliminary approval within 24 to 48 hours.
Our factoring fee is based on several factors: the credit of your customers, your monthly sales volume and your number of invoices. Factoring fees range between 2% to 5% In addition, we charge a monthly 1% finance or interest charge on outstanding invoices.
No, you decide which invoices or customers you want to factor.
Yes, we will purchase your outstanding receivables as part of the initial funding if the invoices can be verified and the customers are credit-worthy.
We verify invoices by written signatures and authorizations submitted with your invoices. We insure that services have been performed or product has been delivered. Occasionally, we will verify the completion of work by contacting your customer.
Yes, you can hold your available reserves on deposit with Mazon Associates. We pay you prime plus 3% interest on the amount of your reserve that exceeds your receivables balance.
Yes, we purchase your invoices and become the first position lien holder on all your invoices while you are a client.
No. we only require a first position lien holder on your invoices.
We provide month-to-month factoring terms. We only require a 30-day termination notice if you no longer need our services.
You can forward the check(s) to us so we can credit your customer’s account. Payments deposited or held by you will not reflect as paid on your customer’s account.
Our success is directly related to your success. We are not a collection agency. We make routine courtesy collection calls but we do not harm your customer relationship. Maintaining your customers’ goodwill and confidence are extremely important to everyone at Mazon Associates.
When your customer invoices exceed the net payment terms for the invoice, we perform soft collections to customers. These calls are courtesy reminders only to the Accounts Payable department. We also send weekly past due statements to customers. If a customer requests a replacement invoice, we will provide that to them. We are not a collection agency, nor do we hire collection agencies.

When you become a client, we assign you an account manager. You will also have access to your account information via our online account portal. You can request reserve draws, check your account balance and view your reports and account information 24/7.

We provide you daily reports for invoices received, as well as a schedule of accounts, a reserve report, monthly account reports and account aging reports. You’ll be able to view your account information online through our client portal.

No, our collection services are included in our factoring fee.
Yes, we will send a replacement invoice upon request.
We use reputable credit bureaus to check your customer’s credit history and account limits. If our credit check warrants a limit on an invoice, then we will promptly notify you.
Yes, we provide credit ratings for customers, upon request.
Customer credit limits are based on the following: credit payment history, years in business, net worth, number of employees, credit appraisal rating, trade references and their history with Mazon Associates.
You sell your invoices to us and we advance you funds for the invoices less a fee and reserve. When we collect the payments from your customers, we remit the reserve amount to you.
The reserve is the portion of the invoice that we hold until the invoice pays. Reserve amounts range from 15% to 20% of the invoice amount. The reserve protects us if the customer short pays, disputes, discounts, or doesn’t pay the full amount of the invoice for any reason.
If an invoice is not paid within 90 days and we have exhausted our efforts to collect the payment, then we will charge your reserve for the unpaid invoice.
You can send your invoices to us daily, weekly, monthly or as often as you choose without penalty or added fees.
Once we process your invoices, we will fund you by ACH or wire transfer, whichever you prefer. Funding occurs the same day that you send us the invoices (before 10:00 a.m.) Funds are usually sent to your bank account before 4:30 p.m.
For same-day funding, invoices must be submitted by 10:00 a.m. Invoices submitted after 10:00 a.m. will be funded the next business day. Invoices may be sent by fax, email, FedEx, UPS or courier. You may also drop them off at our offices during normal business hours or using our drop-slot 24/7.
We process payments by wire or ACH into your bank account before 4:30 p.m.
We handle tax problems on a case-by-case basis. Please let us know immediately if you owe taxes, so that we can discuss the situation.
Yes, we still consider your application even if you have had credit problems or a past bankruptcy.
No. we specialize in helping growing businesses and new start-up companies.

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