Frequently Asked Questions about Factoring-Plus™
Q. What types of financing works with your software? For example, factoring (both invoice specific and borrowing base factoring), asset based lending, term loans, cash flow loans, medical financing, PO financing.
A. Factoring, Purchase Order Financing, Vendor Assurance and Accounts Receivable Management.
Q. Please describe how account debtor credit limits are established and managed in your system. Can a debtor have multiple addresses, but be tied to one credit limit? Can debtors be cross managed between clients? In other words, can a debtor have one limit for a client and another limit for a different client?
A. Limits for both total invoice balance outstanding as well as total factoring may be set for both clients as well as debtors. Debtors may be cross managed access multiple clients and may have different credit and advance limits for each client they are associated with. If a new entry would cause any client or debtor limit to exceed the user is automatically presented with a screen summarizing the account and may easily view associated client/debtor balances and limits. Authorized users may enter an override and allow the entry. The entry may also be assigned a “pending” status and remain on hold and unfunded.
Q. Describe how factoring fees, interest, wire fees and any other charges work in your system.
A. Four types of service charges provide exceptional flexibility and control:
1) A one-time acceptance fee may be a flat amount, percent or both.
2) A percentage based periodic fee, every so many days for as long as the invoice is open. The percent may vary as the invoice ages. There may be from 1 to 365 periods defined, each having a different percent.
3) A management fee based on a client’s overall balance may be charged.
4) A miscellaneous or wire transfer fee may be charged on any invoice or payment entry.
Two separate service charge structures may be assigned to invoices allowing various charges covering any time period. Any number of service charge structures may be defined. Each service charge rate structure may be tracked through user assigned. General Ledger account numbers will be created for each client. Conventional finance charges may also be calculated, tracked and collected on a client’s behalf. Service charge fees are automatically deducted from client disbursements and shown on the various reports and client form that are generated.
Q. How does your system handle client reserves, residuals (invoice specific)?
A. Overall client reserves are tracked by way of general ledger accounts established for each client. Individual invoice specific reserves are maintained in real-time in completed detail and accessible via numerous screen and reports. Funds are disbursed through Accounts Payable, vouchered automatically upon receipt of payment either by bank wire transfer or printed check.
Q. Does your software tie into an accounting package with full g/l and trial balance capabilities? If so, please describe if journal entries happen automatically. If some journal entries need to be manually input, which ones would they be? If the accounting package is separate from the lending software, which accounting package does it tie into and how does the data transfer.
A. Factoring-Plus is built upon Passport Business solutions accounting software designed for small to mid-sized businesses, used by thousands of businesses today. All journal entries are automatically created and flow seamlessly to the included General Ledger package. Of course, various types of manual entries are also allowed such as recurring and standard journal.
Q. Does your system manager A/P? Can it writer checks and make the journal entries automatically?
A. A complete Accounts Payable, Accounts Receivable and General Ledger are included with Factoring-Plus. You can run your entire business with Factoring-Plus and Passport Business Solutions software. Please visit www.pass-port.com for more information about Passport Business Solutions software.
Q. Does your software have the ability to assign brokers to a client and calculate that broker’s commission based on the fees associated with their clients?
A. Brokers may be assigned to clients and their commissions will be calculated according to the commission structures you establish. Any number of commission structures may be created. The Broker List and Broker Commissions Due report shows each broker’s commission structure, fees collected and commissions earned (both period-to-date and year-to-date). Commissions may be paid either based on acceptance of the invoice or when the invoice is paid.
Q. Is your software web based? If not, please describe in detail what is needed to be up and running.
A. The software is not web based. It resides on a server, either locally or in the cloud. The software is accessible however, securely and remotely via the interest using Passport’s Thin Client product, thus allowing access to the system for clients, brokers, etc. Complete security for remote as well as on-site users is included in order to control access to all parts of the system. The software installs easily from a CS. Set up a few basic master files, account-#s, service charge structures, etc. and you are ready to begin entering, creating, factoring and managing your client’s invoices and purchase orders. Further discussion is needed if conversion of an existing data base is desired but certainly may be done.
Q. Please explain in general your business continuity and disaster recovery program. What happens if your system goes down? How quickly can you get back up? How many times has your system gone down even for a few minutes in the last 12 months?
A. Not applicable because the software resides on your local or cloud based server.
Q. Can clients log-in through the web to see their account? If so, what can they see and how/when does the data update to the web?
A. Clients may securely access their information via the internet using Passport’s Thin Client product. A client is provided with a login id and password. Your system administrator creates a user menu that will permit access only to areas of the system that you allow. Clients may view data only or may enter and even post their own data as you choose. You have complete control over what each user may access. All information is in real-time since it does not transfer to the web.
Q. Please describe in detail how verifications work with your software. Specifically, can I quantify verification for a specific invoice? To further explain, I track verifications by client, then by account debtor all the way down to the invoice level. Meaning, when I enter an invoice into the software, if I was able to verify it, I assign it a number 1 – 6. Each number has a different meaning and the higher the number the stronger the verification. At any time, I can go into an invoice and change the verification from one number to another. I can view a report by client and/or account debtor that shows me how the portfolio is verified at any given time.
A. Verification may be done from individual invoices and managed by schedule if that is your choice. Funding, reporting and management by individual invoice or overall schedule status may be done. You may choose from various options that control how individual invoices and invoice schedules are managed. Reporting may be done by invoice status. Invoice level notes may be entered in order to record important information.
Q. Does your system have a phone call recording?
A. There is no phone call reporting at this time. Unlimited free-form notes may be entered for clients, debtors, vendors, invoices, etc.
Q. We have multiple business units that have their own loan portfolios and their own P&L. Does your system offer the ability to be set up with different business units under the same license?
A. Yes, you may run any number of individual businesses under the same software license. You may even consolidate the General Ledgers of various companies if desired.
Q. What types of reporting does your system provide and in what format are they? If your system does not have a report that we need, are you able to build reports for us?
A. The software has numerous reports providing detailed and summary level information throughout the system. Reports and forms may be viewed, printed and/or emailed in several popular formats including PDF, HTML, text, etc.
If the system lacks a report or reporting option that you need, we will gladly create the report or add the reporting option. We welcome user feedback as a primary inspiration for new product development.
Q. Here is a list of reports we currently have that we would like to confirm already comes with your software.
A. Detailed Full aging – YES
Summary Aging by account debtor size – YES
Receipt of Payments – YES
Dilution – YES
A/R Turnover (DSO) – YES
Reserves – YES
Fees – YES
ACD Payment History – YES
Activity/Sales – YES
Does your system generate late notices? Can we customize them? – YES
Does your system have the ability to automatically send specific reports to client and/or management? – YES
Can we e-mail information straight from your software? – YES
Q. What training and support is available initially and then on an ongoing basis? At what cost?
A. Complete training and support is available ranging from phone, e-mail, remote access and on-site. The video training library is available 24 hours a day and is free of charge. Initially, the cost of the system includes a number of training and support hours to ensure you successfully get up and running. The number of included hours is based on the number of users your system is licenses for. If additional training and support is needed it is billed as incurred at the current hourly rate.
Q. Please describe in detail the various costs associated with your software.
A. The cost of the software is based on the number of concurrent users and the options that you choose, such as Purchase Order Financing or Line of Credit Funding. Please note: annual support for Factoring-Plus is significantly less than most other systems.
Q. Can you scan files and images into the system?
A. Not yet, but that is a planned addition for the near future.
Q. Does data need to be input manually or does your system have OCR capabilities?
A. Both options are provided for. Each client may have their own unique import format as well.
Q. How much data can your system handle?
A. Virtually unlimited.
Q. What kind of database houses the data? What are the technical specifications of your systems?
A. The system is written in AcuCobol (not your Grandpa’s COBOL) and uses vision indexed data files or SQL data base tables. A copy of the AcuCobol-GT Version 8 – Data Sheet is available upon request, or at http://www.microfocus.com/000/acucobol-gt-version_8_tcm21-18218.pdf.
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