Factoring your accounts receivable not only increases cash flow, but provides numerous other benefits and opportunities.

Advantages of Factoring

  • Fast & Easy
  • Improve Cash Flow
  • Leverage Off Customers Credit
  • No Consideration of a Business's Credit Rating
  • Continuous Source of Operating Cash
  • Client Gets Detailed Management Reports
  • Faster Payment
  • Not Creating Debt – no monthly payments or balloon
  • No Personal Guarantees
  • No Geographical Limitations
  • Reduces Overhead — helps business downsize so they can concentrate on growing their business
  • Greater Operating Efficiency
  • Off Balance Sheet Financing
  • The "Time Value" of Money
  • Retain Control of the Business – don't give up equity
  • Reduces Bad Debt
  • Professional Collections
  • Offer Credit Terms to Customers
  • Meet Increasing Sales Demands
  • Stop Offering Early Payment Discounts

Reasons for Factoring
With the advantage of positive cash flow, factoring clients:

  • increase working capital by establishing an additional, ongoing source of cash
  • increase cash turnover and pay bills, taxes, etc., on time
  • get cash for operating expenses when they need it
  • get cash when they can't get financing elsewhere
  • avoid giving up equity or control, as they would in traditional financing
  • protect & improve their credit rating
  • avoid long-term debt
  • avoid repayment of debt at inopportune times
  • take advantage of trade discounts by having the cash available to pay up-front for supplies, equipment, etc.
  • take advantage of volume discounts and other spur of the moment opportunities that require cash
  • get instant credit reports on prospective customers and the continuous monitoring of the credit status of all their customers

Who Needs Factoring?

  • Small and medium size businesses, including new businesses and women and minority owned businesses, that can't get conventional financing
  • Any business that needs additional operating capital
  • Businesses that want to expand and need a cash flow injection
  • Businesses with tax liens (or problems they are trying to work out with a taxing authority before a lien is put into place)
  • Businesses that are working through either Chapter 11 or a bankruptcy