What Is Factoring?

It typically takes between 3-5 business days for the initial underwriting and funding process. After that, on average, we fund within 24 hours of invoice receipt. In most cases, we fund same-day.

Below is an overview of Velocity’s process from beginning to end:

• Receive completed application and AR aging for initial review
• Provide proposal and complete underwriting
• Our operations team will set up the new payment address and verify the invoices with your customer
• You’ll receive the advance within 24 hours of verification
• We will monitor the invoices and manage collections so you can concentrate on growing your business.
• Your customer pays us and we return the rebate (amount not advanced less the factoring fees) to you.

Many types of businesses can benefit from factoring. At Velocity, we have factored for a number of industries including oil & gas, staffing, and manufacturing just to name a few.

Yes! In fact, many start-up companies use factoring to generate the cash flow needed to establish and grow their business.

Invoice factoring is a great fit for many companies. If your company meets the following criteria, Velocity may be the perfect partner to meet your financial needs. However, this list may not cover all circumstances so please feel free to call us at 432-247-1888 for a FREE evaluation!

Factoring with Velocity may be a great solution to obtaining working capital if your company:

• Provides goods or services to commercial customers
• Is free of tax liens (or has a payment plan in place)
• Has unpaid receivables that are not pledged elsewhere
• Invoices customer upon completion of work or delivery of goods
• Can provide supporting documentation for the invoices (i.e. – approval signatures, field tickets, water/disposal tickets, bol’s, etc.)
• Serves customers that have net terms ranging between 15-75 days, good communication and/or online systems, and good commercial credit
• Has average monthly sales of $50K to $5MM
• Is looking to work with a factoring team that cares about you, your customers, and your business!

Don’t sweat! Although we do review personal credit, one of the great things about factoring is that we rely the most heavily on the credit-worthiness of your customers. If you work for quality companies that have good commercial credit, it’s unlikely your personal credit will affect our ability to fund.

Throughout the relationship, Velocity may reach out to your customer to update the payment address on file, submit or verify invoices, and manage collections. With Velocity taking on some of invoice management duties, you’ll have more time to focus on building your company. With that in mind, we also understand how important your customer relationship is to your business so it is always a top priority for our team that any communication with your customer is courteous and professional.

No, you choose which accounts to factor. With no monthly minimums, you can factor as much or as little as you need on approved accounts.

No. We believe, whether you plan to factor them or not, it’s in everyone’s best interest for our clients to have good credit information available to them when making the decision to do business with a new customer.

We’re happy to help you review your current financing arrangement. If a buyout is appropriate, Velocity will work with your current finance company as well as your customers to ensure the smoothest transition possible for you.

Absolutely! In fact, we’d love to visit with you in person, whether you are an existing or a potential customer. Since we are located in downtown Midland, we are easily accessible to all of our customers in West Texas and the surrounding area.