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FAQ


What is factoring?
How does it work?
What are the benefits of factoring?
What types of businesses typically factor?
How do I qualify for factoring?
The bank turned me down do I still qualify?
How do I apply?
How quickly do I receive funding?
Is there a minimum dollar amount required to factor?
Are there minimum contract periods?
Can I select which invoices/accounts Evergreen factors?
How are my funds delivered?
Will I lose credibility with customers if I sell my invoices?
How does Evergreen communicate with my customers?
What does Evergreen do if my customers do not pay?
How does Evergreen determine the discount rate (transaction fee)?
Are there any other fees?
Is Evergreen a collections agency?
How long does a business typically do invoice factoring?
What collateral is required?
How does Evergreen evaluate the customer invoices I submit?

What is factoring?
Factoring is the purchase of an invoice at a discount.

How does it work?
You submit an invoice to Evergreen. Once the account is approved, Evergreen advances you 80-90% of the invoice amount. The remainder of the invoice, less the factoring fee, is paid to you after Evergreen collects the invoice.

What are the benefits of factoring?
Stabilized cash flow, growth opportunities, not a bank loan, no need to dilute equity.

What types of businesses typically factor?
Companies young and old with growth opportunities, including start-ups. Factoring is a solid alternative for many different types of commercial and industrial businesses. Evergreen is happy to help businesses from many industries.

How do I qualify for factoring?
While Evergreen does consider your business’s credit, this is not the determining factor. Most of the weight comes down to the merits of the submitted invoice, including the end customer, amount of invoice, etc. The invoice must have open credit terms (example Net 30) and must also be for a delivered for a delivered product or a completed service.

The bank turned me down do I still qualify?
Yes- many people may hesitate to find alternative options after being turned down by the bank, but factoring with Evergreen is a strategic, profitable way to obtain funding through your earned revenue. Many turnarounds and startups, both commonly turned down by banks, have found incredible success and growth through factoring.

How do I apply?
Get started by submitting an application package as outlined here. Evergreen will provide a response within 24 hours following the business day your application is received. Our underwriting and final approval process can be completed within 48 to 72 hours.

How quickly do I receive funding?
There is normally a 24 hour turnaround time on purchasing and funding invoices.

Is there a minimum dollar amount required to factor?
There is no minimum factoring volume or minimum fees required. There is also no maximum factoring cap.

Are there minimum contract periods?
Contracts are short term (month to month) and there is no contract termination fee. 30 day notice by either party. Not annual. No termination fees.

Can I select which invoices/accounts Evergreen factors?
Yes. You can factor invoices as frequently as necessary and choose which invoices to submit.

How are my funds delivered?
You can elect to have funds wired to you and receive funds within hours, or choose to have funds delivered by ACH.

Will I lose credibility with customers if I sell my invoices?
No - invoice factoring is a well established and recognized alternative for businesses to optimize their cash flows. You are simply choosing to grow your business with factoring rather than raise capital.

How does Evergreen communicate with my customers?
The client’s customers are notified by mail of the relationship with Evergreen and payments are directed to Evergreen’s PO Box or bank account.

What does Evergreen do if my customers do not pay?
When a customer does not pay, you must buy back the invoice and are then responsible for collecting the invoice amount from your customer.

How does Evergreen determine the discount rate (transaction fee)?
The charge for factoring is called a discount rate, which is a percentage of the invoice amount. It is determined by the factoring volume and the number of days to collect. On average, clients pay around 1-3%.

Are there any other fees?
There is a one time closing fee of $750 when the contract is set up. Additionally, if you choose to wire your funds there is a $20 bank charge. Other than that, there are no hidden fees.

Is Evergreen a collections agency?
No- when a customer fails to pay the invoice amount to Evergreen the client is then responsible for the invoice again.

How long does a business typically do invoice factoring?
In a typical situation, a company will utilize factoring services for about 18 months - growing sales and retaining profits to the point where they are able to return to a traditional bank line of credit.

What collateral is required?
Only your accounts receivable.

How does Evergreen evaluate the customer invoices I submit?
Evergreen’s quality control process includes reviewing invoice documentation for accuracy and periodically confirming the acceptance of goods or services with the client’s customer either verbally or in writing.