Accounts Receivable Specialists

Written by Patricia Tunstall
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Accounts receivable specialists are the representatives who will help you when you contact your local bank or factoring company for information and guidance. These are designated officials who are familiar not only with factoring, but with the kind of business you operate. With this knowledge, they can explain exactly how factoring will help your enterprise.

Expert Advice from Specialists

A specialist will need answers to important questions about you and your business, of course. Are there any subsidiaries or affiliates? Has there been a change in ownership recently? Has the company ever been in bankruptcy? Do you have any federal or state taxes overdue, and, if so, have any liens been filed? You will need to list the principals involved in your business, if any, and give their title and the percentage of the business they own.

Naturally, your accounts receivable information is the focal point. The specialist will need to know the number of accounts, the aging of the accounts, your largest customers by volume, and your total sales in the last 30 days and in the last year. You will also be asked if you have been financed or factored previously.

What the specialist does is absorb the specific details of your business and apply the parameters of the factor's programs to see if there is any possibility that factoring could be mutually beneficial. Banks in particular are looking for businesses with potential and with creditworthy customers. If you meet their minimum and accept their conditions and terms, a factoring agreement will be signed, funding will be set up, and you will be ready to use your cash advances to grow your business.

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