Invoice Factoring is different from a traditional lending relationship like a bank. Companies can enter into a Purchase Agreement where the Factor purchases invoices from the Seller for work/orders that have already been performed. OperFi utilizes both Recourse and Non-Recourse Factoring options which establishes who the underlying risk is transferred to with the sale of the invoice.
FREQUENTLY ASKED QUESTIONS
Below you will find answers to questions we often get from clients about our services.
How is factoring different from a bank loan?
With traditional banking, the bank operates as a Lender and the client as the Borrower. Factoring differs from traditional bank relationships through a Purchaser/Seller relationship where invoices are sold from the Seller at a discounted rate to the Factor (Purchaser) in order to acquire immediate working capital.
What does the approval process look like?
OperFi does not perform hard credit checks nor do we have strict FICO score requirements. OperFi pulls basic soft credit inquiries on our clients in order to establish a credit history. OperFi reviews bankruptcies, liens, judgments, federal & state tax liens, UCC Filings, and other background factors to determine eligibility. These factors are not disqualifiers, however might be used for quoting rate structures. Our philosophy is that honesty is always the best policy.
What rates are offered?
OperFi provides custom quotes based on your operation. Rate structures vary depending on the size of your operation, number of customers you have, customer days-to-pay, and the type of equipment you own and commodity you haul. OperFi understands that not all trucking companies are the same so custom quotes are provided for each client to best suit their interests.
OperFi provides Veteran Discounts, so show us proof of service. Thank you for your service!
How quickly will I get paid on my invoices?
Easy Answer – Same Day.
Harder Answer – Depends. OperFi makes sure that your customers are fulfilling their contractual obligations for your company. If you agree on a rate with your customer, OperFi wants to make sure that’s what you’re getting paid for. Our specialists will reach out to your customer to ensure that agreed upon rates are actually what they agreed to. Rate verifications may delay funding depending on your customer.
Do I need to sign a contract?
Show me a factor who doesn’t have a contract and we will show you a relationship that might not be in your company’s best interest. OperFi treats our client relationships with the same level of professionalism you would get at a bank. Contracts are in place to protect both sides of the transaction. Just like we want our clients to understand their contracts they have with their customer, we also want to walk them through OperFi contracts to ensure that all parties understand their contractual obligations.
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