Northwest Capital purchases accounts receivable invoices, therefore, Northwest Capital assumes the risk associated with the credit and collectability of a particular account. In assuming this risk, Northwest Capital exercises a great degree of caution and has established firm operating procedures and standards before it accepts any “Eligible Accounts” from a client.
To ensure profitability and successful accounts receivable factoring, which minimizes credit risk, high credit standards and guidelines have been established by Northwest Capital. The company verifies and requests certain documentation such as Federal ID, Articles of Incorporation, lien searches, client guarantee of validity, estoppels certificated and similar documentation.