Our strategic
partner can help your business grow with funds from our fast and
flexible
account receivable purchase programs.
In addition to providing your
business with needed funds, our strategic partner gives you a number
of other valuable services at no additional charge. They act as your
accounts receivable department by tracking your receivables,
providing aging reports, issuing late notices and making collection
calls. The partner also acts as your credit department by providing
credit information on and evaluations of potential customers,
thereby reducing your credit risk. THESE VALUABLE SERVICES WILL
SAVE YOU TIME AND MONEY!
You will receive the following benefits from our strategic partner:
▪
Immediate cash
▪ Greater sales and profits
▪ A solution for short-term or seasonal cash flow
problems
▪ A continuous and growing source of funds
▪ Reduced credit risk
▪ Funds to meet payroll/hire new staff
▪ Cash discounts from your suppliers
▪ Reduced internal paperwork through our accounts
receivable
Factoring is a financing option for
businesses. With factoring, the business (known as the Client) sells
accounts receivable to the Factor in exchange for funding. The
Factor typically advances 75% to 80% of the face amount of the
accounts to Client. The Factor then collects the accounts from the
Client's customers (the Account Debtors) and, upon collection,
remits to Client the remaining 20% to 25% of the accounts, less a
fee. In addition, the Factor provides various accounts receivable
management, collection and credit services to the Client. The
following diagram illustrates the factoring process:
