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Q.: How do I know if factoring is right for me?
A.: If you have cash flow problems due to funds being tied up by unpaid invoices, then factoring is perfect for you.

Q.: How much money can I obtain through factoring?
A.: We typically advance you 75-80% of your receivables immediately, and the balance (less our fees) when invoices are paid. Refer to the Estimate page.

Q.: Where does the other 20% - 25% of the invoice go?
A.: When the invoice is paid by your customer, this percentage becomes real money and is given back to you.

Q.: How often do I give my invoices to Mazon?
A.: You may supply Mazon with a schedule of invoices as often as you would like.

Q.: How much does Mazon charge for this service?
A.: The rate is based on monthly dollar volume, number of invoices, the length of time it takes invoices to pay, and credit of your customers. This rate ranges from 2% to 5% on monthly factored volume between $10,000 and $200,000. For volumes other than these, special arrangements will be made.


Q.: How can Mazon give me cash for my unpaid invoices?
A.: You will provide Mazon with the original invoice, an invoice copy, purchase order and proof of delivery or signed completion of service and Mazon lends you 75% - 80% of the amount invoiced. Mazon then collects the total amount due on those invoices from your customers.

Q.: How soon can I get financing?
A.: Mazon's clients provide invoices by 10 a.m. and generally the funds are deposited, wired or a check is made available that same afternoon.

Q.: Who is responsible for collections?
A.: We encourage you to actively participate in the collection process, but you may choose to have us monitor and independently pursue collections on factored invoices.

Q.: Will I get detailed reports from Mazon?
A.: Yes, Mazon will account to you for every penny. Our reports provide our clients with simple reports to help you account for the factoring process. We fax or mail daily client cash reports. Our reserves reports are sent out twice a month. Also, our aging and schedule purchased reports are sent out monthly. All reports are available upon client request throughout the month at no additional cost to our clients.

Q.: How do I receive the money from my factored accounts? A.: We can wire funds directly to your bank account or send a check via the U.S. mail.

Q.: Does my business need to meet net worth, profitability, debt coverage, years in business or other financial ratio requirements?
A.: No. We are primarily concerned with the credit-worthiness of your customers, not your business, in making funding decisions.

Q.: What type of invoices can I factor?
A.: You can factor almost any valid invoice for a service already performed or a product already delivered to credit-worthy customers.

Q.: Does a bank loan make more sense for my small business than factoring?
A.: Probably not. Banks often have restrictive lending requirements relating to cash flow, profitability, equity and years in business that limit them from making loans to many small to mid-sized businesses. Factoring companies are not in the lending business; we purchase accounts receivable form credit-worthy customers. The decision to purchase your invoices is influenced primarily by the quality of your customer base and their financial stability, not the financial fundamentals of your company.


Q.: How will our customers be treated?
A.: We respect the relationships you have created with customers. We will treat your customers with the same degree of integrity. Any serious issues will be discussed with you and handled appropriately.

Q.: Will my customers think I'm in financial difficulty if they find out I am using a factor?
A.: Absolutely not! Factoring is a viable financing option for all businesses. As long as it is handled in a professional manner, your clients will understand you're doing what's necessary to create cash flow for your business. Most of your clients are accustomed to dealing with factors. Remember, factoring has been around in various forms for several centuries. We position ourselves as your outsourced credit department. Most informed business professionals today are aware that factoring is a common financial tool used successfully by companies of all sizes.

Q.: If my customers know that their invoices are factored, won't they take longer to pay?
A.: No. Often, just the opposite is true. If your customer is a large corporation with its own invoice-payment policy, it will make no difference who the creditor is. They will adhere to their credit policy and pay accordingly. If your customer is a smaller or closely managed company, chances are they will be inclined to pay faster knowing that we, as a Factor, are a prime reporter of credit information to credit bureaus and an influential credit-reference resource.

Q.: How will my customer know where to send payment?
A.: When you factor with us, we ask you to send a letter to your customers, identifying us as your funding source and requesting that payments be sent to our secure lock-box account.

Q.: How will my customers react to Factoring?
A.: Factoring represents over $150 billion a year in revenue in the U.S. alone; it's become an accepted and prevalent form of commercial finance. Most of your customers deal with factoring companies already. Usually, customers will be comfortable that you're factoring, because you'll have more cash to meet their needs. Working with us, you will have extensive credit management and we will deliver consistent, professional collection efforts.

Q.: If my invoices are purchased do you bill my customers?
A.: No. You invoice your customers as usual and fax a copy of that invoice to us. After verifying the invoice, we'll make an immediate cash advance to your company. We will follow-up with the customer to ensure prompt, accurate invoice payment.

Q.: When I use factoring services, where does my customer send payments and to whom are payments written?
A.: When you factor it is easy. All you do is change the remit to address on your invoices and payments are mailed to a lock-box address.

Q.: How do you communicate with my customers?
A.: Our factoring team communicates to your customer through letters, faxes and occasional telephone calls as part of our accounts receivable management/collection services. The letters ask your customers to verify the invoices and direct invoice payments to us. Should your customer default on payments, we will first contact you before taking any action.

Q.: Does the location of my customer matter?
A.: The invoices can be factored from credit-worthy companies anywhere in the U.S.

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