What Is Invoice Factoring?
Invoice Factoring is the purchase of accounts aka accounts receivable (invoices) at a discount. The discount regarding our Program "A," or standard transaction, is 20%, meaning that we initially advance you 80% of the value. However, a share of the unadvanced 20%, defined as the Rebate, will become available to you, on a sliding scale basis, after collection, if your customers pay in less than 90 days.
We factor invoices on a transactional basis. You may submit one transaction per day consisting of any number of invoices. Your rebate will be paid after we first collect enough to repay the 80% advance and our factoring fee if there are no collection issues with any other invoices. Another way to state it is that your rebate is any amount we collect at any time in excess of that total.
What Is Invoice Factoring?
Invoice Factoring is the purchase of accounts aka accounts receivable (invoices) at a discount. The discount regarding our Program "A," or standard transaction, is 20%, meaning that we initially advance you 80% of the value. However, a share of the unadvanced 20%, defined as the Rebate, will become available to you, on a sliding scale basis, after collection, if your customers pay in less than 90 days.
We factor invoices on a transactional basis. You may submit one transaction per day consisting of any number of invoices. Your rebate will be paid after we first collect enough to repay the 80% advance and our factoring fee if there are no collection issues with any other invoices. Another way to state it is that your rebate is any amount we collect at any time in excess of that total.
The Tripartite Factoring Relationship
- Your company performs services or sells and delivers goods and merchandise to your customers and your customers agree to pay your invoices.
- Your company and Photon Funding, LLC (PF) authenticate (electronically sign) their counterparts of the Factoring Agreement.
- Your company creates its invoices on the PF Extranet or uploads invoice data from Quickbooks to PF's database hosted by Amazon Web Services (AWS) Elastic Cloud 2 (EC2) cloud based server system and factors the invoices with PF.
- PF notifies your customers that you have factored your invoices with PF, that new invoices are awaiting approval on PF's website, and that invoice payments must be remitted to PF rather than to your company.
- You and your customers authenticate respective counterparts of relevant Invoice Confirmation Agreements (ICAs), and your customers approve your invoices on the PF website.
- PF advances your company 80% for Program "A" or 90% for Program "B" transactions, respectively.
- Your customers remit factored invoice payments to PF.
- PF remits the applicable Rebate(s) to your company.
The Tripartite Factoring Relationship
- Your company performs services or sells and delivers goods and merchandise to your customers and your customers agree to pay your invoices.
- Your company and Photon Funding, LLC (PF) authenticate (electronically sign) their counterparts of the Factoring Agreement.
- Your company creates its invoices on the PF Extranet or uploads invoice data from Quickbooks to PF's database hosted by Amazon Web Services (AWS) Elastic Cloud 2 (EC2) cloud based server system and factors the invoices with PF.
- PF notifies your customers that you have factored your invoices with PF, that new invoices are awaiting approval on PF's website, and that invoice payments must be remitted to PF rather than to your company.
- You and your customers authenticate respective counterparts of relevant Invoice Confirmation Agreements (ICAs), and your customers approve your invoices on the PF website.
- PF advances your company 80% for Program "A" or 90% for Program "B" transactions, respectively.
- Your customers remit factored invoice payments to PF.
- PF remits the applicable Rebate(s) to your company.