About Us
AI Invoice Factoring LLC (“AI Factoring”) is a commercial finance company which specializes in accounts receivable invoice factoring for non-retail, small businesses. Jack
Most small businesses are undercapitalized with limited access to capital and often have serious cash flow problems resulting from their rapid sales growth and/or their customers’ standard invoice payment terms of Net 30 Days (payment in full in 30 days without discount) or longer, which they often ignore, and take even longer to pay.
Factoring is not a loan collateralized by your accounts/accounts receivable/invoices (“invoices”). Rather, it’s the non-recourse purchase of your business’ invoices at a 20% discount plus a possible rebate which is explained below. Therefore, you will normally receive an “Advance” of 80% of the value of each factored transaction on the date you invoice your customer(s). Non-recourse means that AI Factoring takes the financial risk of your customers’ ability to pay your invoices, and you will not be liable if your unpaid invoice become valueless, because your customer(s) simply cannot pay. However, AI Factoring does not take the risk of the validity of your invoices. THEREFORE, YOU MUST NOT INVOICE BEFORE YOU HAVE DELIVERED THE GOODS YOU SOLD TO THEM AND/OR YOUR HAVE PERFORMED THE SERVICES THEY ORDERED FROM YOU. However, your customer(s) will electronically confirm the validity of the subject invoices online using our invoice verification technology before AI Factoring funds the 80% advance which will substantially reduce the likelihood of your customers claiming that it didn’t pay because any of the subject invoices are invalid.
The CF invoice factoring program is not a loan to your business collateralized by your accounts and accounts receivable (“accounts”), represented by your invoices.
The 20% discount means that CF advances the clients 80% of the value of each factoring transaction. But the clients are entitled to a sliding scale portion of the unadvanced 20% in the form of a “rebate” depending on the number of days from the advance date to the date on which CF will have collected sufficient invoice payments regarding the transaction to equal or exceed the 80% advance and the net factoring fee on the transaction which is the sum of the discount minus the rebate. The net son the which can range and, therefore, advancing them 80% of the value of each transaction (all invoices created on a given day).
The big difference between AI Factoring and “Old School” factoring companies is that AI Factoring normally advances funds to its clients the on the same day on which they create their invoices regardless of their location in the US.
Additionally, AI Factoring is both a commercial finance and a software development company. It has developed the most Technologically advanced web-based invoice factoring software in the factoring industry. AI Factoring’s software and connected relational database are hosted as an “Extranet* on the Amazon Web Services (AWS) Elastic Cloud 2 (EC2) cloud-based system.
* A secure e-commerce website with an SSL Certificate where you, your customers and our team collaborate in electronic invoice factoring transactions.