June 7, 2012
MP Star makes your invoice factoring a positive experience: answers to your most frequently asked questions.
MP Star Financial, Inc. understands you have many options to consider when choosing your factoring company. To help you choose the factoring company that best meets your needs, we have answered your most common questions about making invoice factoring, an asset based lending vehicle (also known as accounts receivable financing and factoring loans), a very positive experience.
And don’t miss these other FAQ pages, covering other areas of invoice factoring:
- Getting started with factoring financial services – your questions answered.
- Factoring financial services details – what about the fine print? Learn more now.
Do my customers need to know I am using factoring loans?
Yes. To streamline the collection process, it is necessary to send your customers a letter informing them of the remittance instructions for future payments. Many clients use this notification to put a positive spin on their business’ accounts receivable financing. They can proudly say: “We are continuing to grow and have secured additional financing to continue to give you the best service/product possible.”
Do my customers need to remit payments to a lockbox for my company to take advantage of factoring loans?
Yes. This is necessary to create a smooth flow of advances and repayments. We recommend you inform your customers in advance, so they expect the “change of remittance address” letter.
Many of our clients use the “change of address” process as a selling tool. They tell their customers “We are continuing to grow and have secured additional financing to keep giving you the best service/product possible.” Apply online now for your factoring loans.
Invoice Factoring: Do I have to factor all my invoices?
No. There are times when you can save money by not invoice factoring. When you do not factor an invoice, and it is paid to the lockbox, it will be returned to you with your regular reserve settlement without any associated invoice factoring fees.
Can MP Star help my company with a tax lien?
Yes, MP Star has helped many clients who have fallen behind in their payments to the IRS, State or County tax, or unemployment authorities. Let’s talk about how we can help you set up and maintain payment plans with these agencies. Request your accounts receivable factoring quote now.
How long is the term of an invoice factoring contract with the MP Star factoring company?
MP Star believes that accounts receivable financing is the lifeblood of a company. We offer no-term contracts for factoring loans because your need for factoring loans will inevitably change over time. Your business deserves to choose the length of time you stay with a factoring company.
Additional questions about our factoring company or factoring loans?
If you have any additional questions about factoring loans as an asset based lending vehicle, please feel free to email us or call toll free: 800-833-3765 Ext. 150. Apply online now for your invoice factoring program.