Accounts Receivable Financing
Accounts Receivable Financing (factoring) is neither equity nor debt. It strengthens the business's balance sheet and control of the business stays with the owner(s). It is a method of both financing short term cash flow and outsourcing the administration of credit and collections.
Factoring has been practiced since colonial times and has been used by companies such as Texas Instruments, 3M and Abbott Laboratories to manage their short term cash flow. In the U.S. alone, over $110 billion was factored during 2005.
How Does it Work?
We purchase and service invoices owed by creditworthy customers.
Our Credit Department reviews all of your customers, existing and potential customers, pulls their D&B and checks references so you can make an informed decision on extending credit and avoid bad debt losses.
Once goods and services are delivered, we advance you the majority of the invoice amount up front, and ledger the invoice into our online, realtime system. Our professional collections team follows up with courtesy calls if payments are late. We pay you the remainder of the invoice amount upon collection, less our fee.
You can log on to our system through the web at any time to see the invoice status, notes from the collectors, check images and more.