Approval Process  

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:

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 for an interview that will assist us in learning more about your business model. Once we receive a signed and notarized Factoring and Security Agreement, the following documents may be requested by your underwriter:

  • 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.

Upon completion of underwriting, we review your files and make a final decision. If approved, we move into client onboarding and first funding.

Step 4: Client Onboarding

In this final stage, you are introduced to our operations team and an account executive is assigned to you. We start the notification phase with your customers (notification is the process of informing your customer that payments should be directed to our secure lockbox facility). Once notification is complete, we verify the invoices you wish to factor with your customers (verification is the process of confirming the invoice amount and contents with your customer who owes that payment, this ensures accuracy).

After these phases are complete, we purchase your invoices and transfer the advance, less our fees, to your bank account. From this point forward, you are able to track all account activity using our online account management system, CADENCE. Once United Capital Funding receives payment from your client at our lockbox facility; we send the reserve minus the according fees.