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Midwest Factoring

account receivable


About Our Factoring Company

I. Overview

Midwest 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:

- 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 a fee.

- you and your company.

Debtor - the responsible payee for an assigned invoice

II. 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.

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