Step 1: Review and Proposal
Once we receive a complete application and any additional material requested, we will review your submission. If approved to move forward, we issue an Expression of Interest Letter with the following information:
- Factoring fees
- Credit limits for each of your customers
We also send a Certification of Beneficial Owner(s) form. This form is part of a new regulation requirement under the Bank Secrecy Act. More information can be found from the U.S. Department of the Treasury: https://www.fincen.gov/.
Step 2: Legal Documents and Prepare for Underwriting
After we receive the signed Expression of Interest Letter, a legal agreement will be sent, called the Factoring and Security Agreement. At this stage, please send in the information listed in the documentation request checklist.
Step 3: Underwriting and Final Decision
At this point, you will be introduced to underwriting and receive a call from one of our underwriters for an interview that will assist us in learning more about your business model. Upon completion of underwriting, we will review your files and make a final decision as to providing factoring services to your company.
Once we receive a signed and notarized Factoring and Security Agreement, the following documents will be requested by your underwriter when you’ve been approved for factoring:
- Signed Schedule of Accounts listing invoice(s) sent for funding (page 16 of the agreement),
- Copy of invoice(s) intended for factoring,
- Proof of delivery and/or Bill of Lading,
- Purchase Order (if applicable),
- Signed time sheets (if applicable),
- List of customer contact information (name, phone, and email),
- And additional backup if necessary.
After the completion of underwriting, final review, and verification of your invoices with your client, we will purchase your invoices and transfer the advance, less the initial fee, and bank transfer fee, to your bank account.
Step 4: Client Onboarding
From this point forward, you are able to track all account activity using our online account management system, CADENCE.
Each client relationship at United Capital Funding is assigned an account executive. This person will be your primary point of contact moving forward.
Once United Capital Funding receives payment from your client at our lockbox facility; we will return the reserve minus the according fees.