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What IS Accounts Receivable Financing / Factoring?
- A cash flow tool that allows you to use your accounts receivable as an asset to ensure the growth of your business, without diluting your existing equity or incurring additional debt.
- An effective way to turn your accounts receivable into immediate cash which you can use any way you wish.
How is this beneficial to my business?
- The funds can be used for almost any business expense such as increasing inventories, capital expenditures, taking advantage of supplier discounts, hiring additional staff, and expanding facilities.
- Accounts receivable financing frees your staff from onerous billing, collection, and administration chores while eliminating costly mailing fees.
- We can take over the backroom operations for your credit and collections departments.
- Funds secured through a reliable factor will enable you to ensure your business achieves the growth it needs to flourish.
Who needs factoring?
- Undercapitalized or new companies
- Growth oriented companies
- Companies that cannot get adequate bank financing
- Companies with tax problems, liens, or working through a bankruptcy
- Companies with low or negative net worth
What are the advantages of factoring with us over borrowing?
When you borrow...
- Typically a lender will secure collateral equal to a minimum of three times the loan amount
- Your flexibility is restricted
- You cannot secure additional funds without renegotiating the loan
- You must meet monthly payment obligations
- You incur additional debt further leveraging your business
When you factor...
- You don't borrow money
- There are no monthly payments
- Mailing expenses and costs associated with follow-up management on accounts are eliminated
What factoring does...
- Improves cash position
- Increases purchasing power
- Works to improve your credit rating
- Makes it possible to increase production and sales
- Provides professional credit checking on your customers
- Provides complete accounts receivable portfolio management
