💡 Summary #
All payments for factored invoices go directly to Factor & Fund’s controlled account, as outlined in your Notification of Assignment (NOA).
This setup ensures complete transparency, secure fund flow, and proper crediting of your invoices — protecting both you and your buyers.
⚙️ How Payment Flow Works #
1. Buyer Pays Factor & Fund Directly #
Once your invoices are factored:
- Your buyer (debtor) receives the NOA, instructing them to remit payments to Factor & Fund.
- Payments can be made via ACH, wire transfer, or check — whichever the buyer normally uses.
- Each payment includes your invoice number and company name for tracking.
🟦 This step prevents confusion or misdirected payments.
2. Funds Are Deposited to the Controlled Account #
Payments are received into a secured, dedicated account under Factor & Fund’s name, used exclusively for client remittances.
Each payment is automatically tagged to your business and applied to the corresponding invoice.
- All deposits are reconciled daily.
- No third-party handling or external processors.
- Account is verified and monitored for compliance under California DFPI rules.
3. Reserve Release Triggered #
After the buyer payment clears:
- Factor & Fund reconciles the payment.
- The factoring fee is deducted.
- Your reserve (remaining balance) is released via ACH or wire.
This typically happens within 1–2 business days of cleared payment.
📈 Example #
| Event | Amount | Action |
|---|---|---|
| Buyer pays invoice | $100,000 | Funds go to Factor & Fund’s controlled account |
| Advance already paid | $90,000 | You received this upfront |
| Fee deducted | $3,000 | Factoring fee applied |
| Reserve released | $7,000 | Sent to your business account |
🧩 If a Buyer Pays You by Mistake #
Occasionally, a buyer may forget the NOA and pay you directly.
If that happens:
- Notify your account representative immediately.
- Forward the full payment to Factor & Fund’s remittance account.
- This ensures your account stays in good standing and reserves continue to release normally.
🔒 Why This System Protects You #
- Prevents duplicate payments or buyer disputes.
- Creates a verifiable audit trail.
- Keeps your factoring line active without interruptions.
- Meets California commercial finance compliance standards.
❓ FAQ #
Can my buyer pay Factor & Fund by check?
Yes, though ACH or wire is faster. Checks should be made payable to Factor & Fund and mailed to the address listed in the NOA.
Can I see when my buyer pays?
Yes. You’ll receive a payment confirmation and reserve statement for each cleared invoice.
What happens if a payment is short or late?
Your account rep will contact the buyer to reconcile. Reserve release timing will adjust based on actual payment received.
