Financial Services FAQ

What type of industries does Crestmark finance?

We offer financing to Distributors, Manufacturers, and Service industries.

What are the characteristics of a typical client?

Many of our clients are start-ups, in the middle of an aggressive growth period, or in a turnaround or transitional phase.

How are fees generally proposed?

Because we tailor our financial offerings to each individual client, there is no standard/general way that the fees are proposed.

Does Crestmark fund outstanding invoices, or only new ones?

Crestmark funds both outstanding and new invoices.

Does Crestmark approve all customers?

No. There are certain criteria that customers (or account debtors) must meet. Contact one of our business development officers for more information.

Do you offer other types of financing other than accounts receivable?

Yes. In some cases, Crestmark offers Inventory Financing in conjunction with Accounts Receivable Financing.

When working with Crestmark, where are my customers required to send their payments?

Payments are mailed to a P.O. Box set up by Crestmark.

What is the notification process?

The notification process varies depending on the type of financing that will work best for your situation; your salesperson (or business development officer) will explain more.

What changes are going to impact my customer relationship?

Your customer relationships will not be impacted at all. They will receive occasional random confirmation calls from courteous professionals who process your ongoing funding, and you’ll be alerted if any of your customers are falling behind invoice terms.

Why would I choose to work with Crestmark?

Crestmark is professional, experienced, and reliable. And as a direct lender, we don’t rely on others for our source of funds. Crestmark will conduct the financing and improvement of collections, as well as provide additional working capital.

How long does funding take?

Initial funding is usually available in 5 – 15 business days, and funding thereafter is available the same day.

What do I need to do to get started?

Although it can vary depending on the type of financing that will work best for your specific needs, in order to get started, you will need a completed application, Accounts Receivable (A/R) Aging, Accounts Payable (A/P) Aging, Articles of Incorporation, your company customer list, your customer’s financials, a current interim (if applicable), and a sample of three (3) invoices with back-up information including a purchase order of contracts.

Does Crestmark handle any other type of financing beside accounts receivable, asset based lending?

Yes, Crestmark also handles Factoring.

Must I sell all of my receivables?

No, sell only those receivables that you want, when you want.

What are typical advance rates?

Advance rates depend on your industry and situation, but typically range from 70% to 95%.

How long until I get cash?

It normally takes 48 hours to fund your first invoices. Subsequent invoices are purchased the same day, provided they are received by the time stated in your agreement.

What industries do you purchase invoices from?

We deal in all industries, with the exception of construction and third party medical.

What is the application process?

We require a completed application, current Accounts Receivable and Accounts Payable Agings, and invoice copies with purchase orders from the five (5) largest customers in order to determine the financing structure that will meet your needs.

What if other banks have already said, "No”?

We are frequently able to provide solutions to companies that have been turned down by other banks. Crestmark bases your financial agreement on the credit strength of your customers and the strength of your company’s account receivables.

What if my assets are already pledged?

We must have a first lien position on your accounts receivable. If they are pledged, subordination from the senior lien holder must be obtained.

How are invoices verified?

We use written and verbal methods by courteous professionals to confirm that services or products have been delivered, and that payment is expected on invoices that we purchase. Our procedures are designed to ensure that your customers are not inconvenienced.

Do you do my credit checking?

We work with various credit databases and have resources to perform credit services – usually eliminating any credit work on your part.