Traditional factoring, also known as non-recourse factoring is available for both domestic and import / export situations, and provides your business with outsourced credit and collection services as well as optional funding. Many companies need additional cash flow to support seasonal demands, growth, and more. Traditional factoring is one of the oldest forms of business financing in use by many large well-known companies, and is an option that offers extended protection from credit risk of your approved customer or account debtor.
Prior to shipping an order or providing services to a customer you can contact our credit department to determine if the customer is credit approved. You then determine whether or not you wish to ship or provide services up to the credit approval or beyond. Regardless of the credit approval, we may make advances up to 90% of the invoice amount within 24 hours. The invoices that are credit approved will be paid to you at maturity even if the customer has financial inability to pay as we have assumed the credit risk of the approved invoices.
Our professional and efficient invoice management team follows up to ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release unfinanced amount to you, less an administrative fee. And, with our timely detailed web-based reporting, you can check for payment 24 hours a day, seven days a week.
This traditional/non-recourse factoring process will free up valuable resources and allow you to do what you do best including generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of damaged goods, lost shipments, misplaced or disputed invoices, or keeping payments current.
And, because traditional factoring allows you to access more capital as your business grows, or less if you need less, you can ask us to either ramp up, or scale back on the number of invoices we finance.