At MDS Funding, we have created this Web site to satisfy our clients’ needs. With this goal in mind, we have compiled a list of frequently asked questions. If you do not find an answer to your question here, contact us at or email@example.com
We typically will advance you 70% to 80% of the face value of your receivables immediately, and the balance, less our fees, when the invoices are actually paid. For instance, if you have $100,000 in accounts receivable on your books, you could immediately receive up to $80,000 in additional working capital. Our split funding program is compatible with most of the more popular credit card processors. We work with many of the top platforms for merchant services including Clarity USA and High Risk Merchants. If your sales increase, so will your receivables, and we will advance you more capital. You can see that factoring can be best described as a way of financing your sales.
Once you are established as a client, funding usually occurs within two business days after you submit your invoices for factoring. Within 1 to 2 weeks you can be established as a client.
Fees vary depending on the amount of factoring volume you do with us, the dollar amount of your invoices, and the strength of your customersâ€™ credit. In general, our fees are no higher than those charged by a credit card company to businesses that accept credit cards for payment. We will gladly give you a firm quote of our fees after we complete a review of your Accounts Receivable.
No, in fact it can help your relationships. Your factoring of invoices enables us to provide a form of Quality Control for you. If your customer is dissatisfied or unhappy with your products or services, they are quite likely to tell us about it. We will relay these comments to you so you can take appropriate action to keep your customer happy. At MDS Funding, we are very mindful of the time and care you have taken to develop your customer relationships.
No. The decision to buy your invoices is based on the credit strength of your customers. Factoring does not create any new debt for you or your customers.
Oftentimes, just the act of factoring will prompt some of your customers to pay more quickly. This is because many Factors are reporting companies to the various credit agencies, and your customers know this. They may also know that you are not a reporting company, and if they are slow in paying you it will not be reported. However, if an account we have factored becomes substantially past due, we will discuss the situation with you before taking any collection action. We are respectful of your customer relationships. Also, if we take collection action, you are spared the dilemma of trying to keep your customers happy while trying to collect from them at the same time.
No. You decide which invoices you want to factor and which invoices you want to keep. There is no requirement to factor all of your invoices.
Yes. By selling your receivables, you are also providing Asset Protection for your medical practice.
Vendor Pay is an accounts payable service that pays your participating vendors one-day after your company approves the invoices for payment. We use our money at no cost to your company.
Vendor Pay benefits your company in the following ways:
No. The vendors you designate will have the choice to “opt-in” . Those that do not choose to “opt-in” will continue to be paid as they have been by your company. Those that choose to “opt-in” will be paid via Vendor Pay in one day after your company approves the invoice for payment. Your company will then reimburse the VP program for the original invoiced amount on an agreed upon payment schedule for those vendors that are paid by our VP program.
No. Your accounts payable department is not taken over or replaced. However, it is made more efficient by having to deal with fewer calls from vendors asking when they will be paid.
Your accounts payable department will continue to validate which invoices should be paid. For those vendors in the VP program, a payment code will be entered into your accounts payable system that indicates that VP will pay the vendor rather than your company. An electronic link will be setup between your accounts payable department and VP to indicate when the vendor should be paid. The payee for this vendor is changed in your accounts payable system to be “VP” instead of the vendor.
There are no monthly minimum requirements.
We will need the following to get started:
VP program setup:
No. Vendor Pay is not factoring. Our VP program is payables-based; our factoring programs are receivables-based.