Merchant disclosures

Our Solution

FlexFactor offers an innovative factoring solution designed to address failed payment transactions for merchants. Our technology enables the seamless assignment and factoring of eligible invoices resulting from declined transactions, providing merchants with an efficient alternative to traditional payment recovery methods.

How It Works

When a customer’s payment transaction fails, the merchant can automatically offer the associated invoice to FlexFactor.
Our proprietary technology evaluates the invoice in real-time for eligibility. If eligible, FlexFactor initiates a factoring service for the invoice, providing the merchant with access to funds for completed sales.

Understanding Invoice Factoring

Invoice factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party (factor) at a discount. Key points to understand:

• It is not a loan or a trading activity.
• It provides access to funds already earned by advancing payment on receivables.
• It operates under different regulations than traditional lending methods.

Regulatory Compliance

FlexFactor is committed to compliance with applicable laws and regulations. While invoice factoring is not subject to traditional lending regulations, certain jurisdictions require specific disclosures:

• New York State regulations require providers of commercial finance services to provide recipients (merchants) with specific disclosures at the time of extending a specific offer for various financing types, including factoring transactions.
• The California Financing Law (CFL) mandates that providers facilitating “commercial financing” disclose, at the time of extending a specific offer of commercial financing, specific transaction details such as the total amount of funds provided, total cost of financing, and term or estimated term, etc.

We provide these required disclosures both in this document and in each order form executed with our merchants.

Industry Affiliation

FlexFactor is a member of the Secured Finance Network, a self-regulating association for factoring service providers. This affiliation demonstrates our commitment to industry best practices and ethical standards.

Legal Notice

The information provided here is for general awareness and does not constitute legal or professional advice. While we strive for accuracy, this page may not cover all applicable laws or regulations specific to your circumstances. Merchants are encouraged to seek independent legal advice for their specific circumstances.

For more detailed information about our services, terms, and conditions, please refer to your specific order form or contact our customer support team.