About Our Factoring Company
Factoring Company is a commercial finance company that
specializes in purchasing your invoices for cash.
We are committed to providing your company with the most accurate
and timely accounting information in the finance industry. Our reports
are designed to fully disclose all relevant information regarding
assigned invoices from the receipt of payment and the disbursement
of associated funds. We welcome all comments and suggestions regarding
our service and how we might better help you in the service of your
company. Midwest Factoring Company
follows Generally Accepted Accounting Principles in the compilation
of all reports. Information for your company is tracked on an invoice
by invoice basis.
Definitions of Factoring Terms:
Advance - the amount available for disbursement to you
resulting from the purchase of an invoice. It is calculated as the
gross invoice amount times the advance rate.
Reserve - the dollar amount due
your company as a result of the collection of an invoice. If the cash
amount received for the invoice is greater than the advance made on
your invoice plus the fee due to Midwest
Factoring Company, you will receive a reserve credit. This
credit may be deposited as cash into your banking account upon request.
If the cash collected by Midwest Factoring
Company for your invoice is less than what was paid to
you plus our fee, you will have a reserve debit, or a dollar amount
owed to Midwest Factoring Company,
by your company.
Hold - the difference between the advance amount and
the gross face value of the invoice. When an invoice is paid, a portion
of the hold goes into your reserve account and another portion goes
to Midwest Factoring Company as
Client - you and your company.
Debtor - the responsible payee for an assigned invoice
Factoring Company Reports
Midwest Factoring Company produces
the following reports:
A) Purchases & Advances Reports - lists all assigned
invoices, and shows the amount advanced against each invoice. This
report is generated every time invoices are presented for purchase.
B) Reserve Account Report - lists all invoices as they are
removed from our system through payment.
It details the date the check was received by Midwest
Factoring Company, amount of the invoice, the check amount,
check number, the fee charged, and the amount due back to your company.
C) Accounts Receivable Aging - lists all open invoices,
classified by debtors, that Midwest Factoring
Company has purchased from your company. This report details
the age of each individual invoice and is faxed to your company in
a timely manner.