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Manufacturing and distribution factoring solutions.
Is your company in manufacturing, wholesale or distribution? Here’s how we can help.
As you most likely know the manufacturing, wholesale and distribution industries are all being affected by ever increasing invoice payment times by customers and the tightening of bank supported financing. The widening time gap between paying your suppliers and getting paid by customers can put a huge strain on cash flow and the growth of your business. What other options are available to provide working capital to support your company’s growth and daily operations? Factoring!
Benefits of factoring
-Quicker cash to take on longer orders and customers.
-Free credit reporting for potential clients.
-Outsourced billing and collections.
How it works.
Factoring is a fast source of readily available cash flow with the added benefit of no additional debt. What is factoring? It is the purchase of your accounts receivable at a discount. Factoring can supply you cash from 80% to 90% of your outstanding accounts receivable, usually within 24 hours. The remaining 10% to 20%, minus the factor’s fee will be sent upon completed invoice payment from the customer. Factoring is unique in its credit underwriting approach as well. Instead of relying solely on the customer’s credit, the factor is more concerned with the creditworthiness of the businesses making up the accounts receivable. This is incredibly important when the manufacturer, wholesaler or distributor has limited or no established credit. Companies with established credit can also find themselves in a growth mode that outstrips credit availability – factoring can be a step to provide the working capital for that growth.