From our offices located in Durango Colorado, we are able to help our business clients build their business with creative financing solutions.
Accounts Recievable Financing and Factoring
All businesses, whether they sell merchandise or perform a service usually must wait 60-90 days to get paid after they send an invoice.
This usually creates a severe cash flow shortage in their business. Account Receivables and invoices are your most valuable asset.
Factoring is simply a way to finance your sales. You sell your open invoices at a small discount and you get your needed cash flow Many times we can provide a line of credit giving a much needed cash flow as the business needs, so they can pay suppliers, payroll, rent, etc.
There are several benefits to account receivable factoring which are outlined below:
• You don't give up equity as with investment capital or new partners.
• You can take advantage of supplier early payment and volume discounts.
• You have the ability to make volume purchases from suppliers.
• No more offering early payment discounts to customers.
• Elimination of your bad debt. Factoring is non-recourse.
• No additional debt, factoring is not a loan. (off balance sheet)
Proceeds from account receivable factoring are not a loan. You are literally selling your open invoices for their face value less a small discount.
Therefore, the creditworthiness of your customers is a critical factor in determining whether this will work for your business or not.
If your customers do not pay on time, then the company which purchases the accounts receivables from you will not do business with you again, and you will not get the quick financing boost when your business needs it.
Typical transaction size can be from $100,000 to 3 million
Typical approval time 3-7 days.
For sixteen years we have continued to live by the statement,
"PROMISE LESS, DELIVER MORE"
