What Information Do Factoring Companies Need from Me?

A factor needs three things from you: basic business documentation (formation documents, EIN, bank account, ownership details), information about the customers you want to factor — who they are, their billing contacts, your payment terms with them — and a current accounts receivable aging report. Your customers’ information is the part that matters most, since their credit is what drives approval. The list is shorter than a bank’s, but being organized still gets you funded faster.

Here’s what a factor will typically ask for about your business:

• Basic formation documents — proof your business is legally established (articles of incorporation or organization, your EIN).

• The business’ bank account information where advances will be deposited.

• Basic ownership information for the principals.

• Your business’ address and contact details.

About your customers (this is the important part):

• A list of the customers whose invoices you want to factor, with their contact and billing information. Because your customers’ credit drives approval, this matters more than almost anything else.

• Information about your typical payment terms with them.

About your receivables:

• A current accounts receivable aging report.  This report details what’s owed to you, by whom, and how old or overdue it is. This gives the factor a snapshot of your receivables.

• Sample invoices so they can see how you bill.

• Supporting documentation examples (delivery receipts, timesheets, purchase orders — whatever proves the work was done in your industry).

Possible additional items, depending on the factor and your situation:

• Verification that you don’t have existing liens on your receivables (or information about any that exist, so they can be addressed).

• A check for existing UCC filings, which the factor will usually handle.

For some arrangements, basic financial statements — though factoring requires far less financial documentation than a loan.

The reason the list is lighter than a bank’s is the same reason factoring is fast and accessible: the factor is underwriting your customers and your invoices, not running a deep examination of your company’s finances and your personal credit history.

A practical tip: assemble a simple folder before you apply — formation docs, a sample invoice, your AR aging report, and a clean list of customers. Having those ready can be the difference between funding this week and next. And don’t hesitate to ask the factor exactly what they need; a good one will give you a clear, short checklist rather than a mountain of paperwork.

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Related Reading

• What Do I Need to Apply for Invoice Factoring — and What Does Onboarding Actually Look Like?
• What Type of Invoices Can Be Factored?
• How Fast Can I Get Cash From Invoice Factoring?
• Do I Need Perfect Credit to Use Invoice Factoring?

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