The prospective client completes
an application and submits it to Allegiant with a copy of its
accounts receivable aging schedule.
Allegiant gives preliminary
approval and quotes terms subject to formal due diligence.
After the prospective client
accepts the terms, Allegiant completes a formal credit review
of client, client's customers and the principal's personal credit.
Assuming both Allegiant and
the client wish to proceed, client executes and sends Allegiant
a Purchase and Sales Agreement with an Assignment and Notification
Letter.
Allegiant executes Purchase
and Sale Agreement thus purchasing the accounts receivable and
advances the client up to 90% of the value of the invoices.
Your customers are notified
of the new payment address.
When Allegiant collects the
payment of the invoices, the balance of the invoice, called the
reserves, less the factoring fee is remitted back to the client.
Allegiant provides you with
regular statements of activity on the accounts. Future invoices
are purchased within 24 hours of Allegiant receiving the invoices
from the client.
