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Q: What is factoring?  

A: Factoring is the selling of a company's accounts receivable to a third party. Factoring gives businesses the power to ensure growth without depleting equity or incurring debt.

Q: What type of businesses does CAFI factor?  
A: We fund commercial construction subcontractors, service related companies, services companies such as ground maintenance and janitorial companies, long haul trucking companies and manufactures.
Q: Is factoring too expensive?  
A: If your growth is constrained by your cash flow and you have an adequate profit margin to cover the cost of factoring, the cost of lost opportunities most likely exceeds the cost of factoring.
Q: How long does it take to process my application?  
A: We generally approve applications within 72 hours.  
Q: How long does it take to fund an invoice(s)?  
A: We follow a process that takes as long as it takes to get a response from the account debtor (general contractor or owner) to verify the commitment to pay the invoice that is submitted to us for funding. In most cases, the time to verify these invoices is the driving factor behind funding an invoice in a timely manner.
Q: Do I have to be an established business with a minimum year requirement to be approved for funding?  
A: No, CAFI has no minimum requirement. Also, we fund start-up companies.  
Q: Will factoring benefit my company?  
A: Factoring can be beneficial to your company when managed properly, by increasing your purchase power to purchase materials for the project we are funding. This allows you to take advantage of early pay discounts from suppliers ranging from 1% to 2%.  
Q: Do I have to factor all of my invoices?  
A: No, CAFI realizes that it may not be necessary to fund all of your invoices. You decide which invoices you want to fund.  
Q: Do I receive my funds from my factored invoices?  
A: In most cases, we wire funds directly to your bank account.  
Q: Are my accounts receivable pledged as collateral?  
A: Yes, we require a first lien position on all accounts receivable while you factor with us. We work in conjunction with a bank if they have a first lien on all assets. Most banks will agree to subordinate a portion or specific accounts receivable to us to allow us to fund certain receivables. In most cases, the combination of bank financing and factoring is beneficial to your company!
Q: How do I know if my company will qualify for funding with CAFI?  
A: If your company sells goods or performs a service for other businesses with a good credit rating and has not pledged its accounts receivable to a financial institution as collateral, your company will most likely qualify.
Q: Is it necessary to commit to a long term contract?  
A: No, you choose what you want to fund. No early termination penalties.  
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