Frequently Asked Questions

General FAQ

What is factoring?

Accounts receivable factoring is a process that turns your accounts receivables (invoices) into cash flow by eliminating the waiting period while your invoices are paid. This provides businesses with the opportunity to have consistent cash flow for ongoing operations and additional cash reserves to fund growth opportunities.

What is the difference between factoring and a bank loan?

With a bank loan, it’s a lengthy and difficult application process, with a mountain of debt and monthly interest fees – yikes, that doesn’t sound fun to us either. While this is what you can expect with a bank loan, factoring serves as a smart alternative. With factoring you get a simple, streamlined application process with a quick approval. Best of all, you incur zero debt! Because of this – big, medium and small businesses alike benefit from factoring.

What types of industries do you service?

VendorPayment specializes in financing government and municipalities receivables in almost all industries. Some examples of clients we have served include manufacturing, staffing, contractors, medical, wholesales, professional service, oil and gas, freight brokers.

What about the location of our customers?

VendorPayment purchases credit worthy invoices from anywhere in the world.

Application Process

Do I have to be an established business operating for a certain number of years to be approved?

No. VendorPayment can assist emerging as well as mature companies. Even recent start-ups are not a problem in most cases, as long as there are verifiable government accounts receivable.

What about the location of our customers?

VendorPayment purchases credit worthy invoices from anywhere in the world.

Invoicing & Collections

Do I have to factor all of my invoices?

No, you are always free to decide which invoices you would like to factor.

Are my receivables held as collateral?

Yes, VendorPayment requires a first position on all accounts receivables while you are factoring.

How do my customers know where to send payment?

When VendorPayment purchases an invoice it is stamped with our address before being sent to your customer.

How do I receive my money from my factored invoices?

VendorPayment can transfer funds by ACH or wire to your account, send a check through any overnight service or US mail.

Illinois VendorPayment Program

How do I know if my outstanding invoices are eligible?

Most vendors are eligible once an invoice is past due for longer than 90 days. VPPA can confirm that your invoice is eligible.

How long till I receive my payout?

Once the state confirms your invoice value and approves the assignment agreement, you will immediately receive at least 90% and up to 100% of your outstanding invoice. If less than 100% was paid up front, the balance of the invoice value will be paid once the state remits payment.


Is there a limit on how many invoices I can submit?

No, Vendor Payment allows you to submit all your invoices and you can then choose the ones you would like to assign and receive your payment.

Ready to get paid?

Get started with our simple application.