Frequently Asked Questions

The purchase of invoices at a discount for immediate cash for working capital needs.

During the application and approval process, we consider the overall strength of your company, including the creditworthiness of your customers and the strength of your relationship with them, your industry, your documentation, etc. On the other hand, banks focus on your company’s financial strength. Accounts receivable financing is not a loan; therefore no debt is entered on your company’s balance sheet. We can make a quick decision, while banks may take weeks-even months-to approve a loan.

Your Fico Score is one of many factors that we consider so a low FICO score will never be the sole reason we don’t do business with someone.

Since it is your customer who pays us, we concentrate more on their creditworthiness. We have helped many companies in their early stages grow into profitable entities.

From receiving your application, and the required documents, we can get you a decision in less than 48 hours in most cases.

Just complete our application and provide the requested short list items to schedule a New Business call with the CEO and New Business Development team or hit apply now and a business development team member will be in contact with you within 24 hours.

Yes, Sterling requires a $500 set-up fee to engage the new business team for factoring or a due diligence deposit for deals over $500,000 that require an on-site field exam.

We take into consideration many variables, some of which include your sales volume, your customers’ credit strength, trends in customer payment cycles, invoice amounts, and the current climate of your industry.

Typically it takes 2-5 business days. It depends on which state you are in, because we have to perform our due diligence through the secretary of state to make sure that your entity is active and also that there are no liens/UCC’s on your company. It also depends on how fast we receive the required information from you.

We don’t have a long-term contract and we have No Termination Fees. You can cancel anytime, which means we have to Earn Your Business Every Day.

Factoring has become quite common and many customers have probably sent payments to factors before. We understand that customers are the most valuable key to business. We want you to maintain your customer relationships, so the way we communicate with them is respectfully designed to protect your good will. Your customers will understand that you are working with Sterling Commercial Credit as you would any financial institution. Banks typically file liens on company assets and require payments from your customers to be sent to their lockbox.

Here is how this process works:

  1. You invoice your client and add the new lockbox instructions on all future invoices.
  2. You also send a copy of that invoice to us.
  3. Then, we redirect your customer’s payment to our bank lockbox.
  4. As your new Accounts Receivable Management Company, we confirm the invoice with your customer on your behalf.
  5. Your customer will be asked to send your check to our bank lockbox.

We successfully redirect payments on hundreds of companies each week. We have a long standing tradition of setting up new companies with factoring and working with your clients accounting departments.

The last thing we want is for you to lose a customer. We are not a collection agency, so we will never harass your customers. Maintaining your customer relationships is of utmost importance to us. We only succeed if you succeed. Furthermore, our staff are recruited, hired, and trained to help you secure and grow your customer relationships in a professional manner.

If an invoice is unpaid after 90 days, you have a few options. You can choose to swap out that invoice in exchange for a new one or you can simply buy it back.

We have many years of experience working with other financial institutions. Since we must have first rights to the asset we are purchasing, we are usually able to arrange a subordination agreement or negotiate the release of any liens that may be encumbering your receivables.

In most cases, yes, depending upon the tax amount in relation to your monthly volume and the details of the workout agreement you have with the government agency.

We collect or redirect payments only for the customers you have chosen to factor.

Yes, the redirect is per relationship, so once that customer is redirected, Accounts Payable has the Notice of Assignment in their system and all payments will come to us.

Sterling's primary role is to gain invoice verification and proper redirection procedures in the accounting systems. As far as collections, we provide an information gathering service and provide updates notes into our database that are shared with our clients. We do not consider Sterling a collection agency but have the resources available for our clients which includes in-house legal services when our clients require an added boost to a non-paying client.

Sterling Commercial Credit offers financial services to businesses in manufacturing, distribution, staffing, transportation, business 2 business services, technology, and oil and gas to name a few.