- Financing current Working Capital Needs
- Speed to deal – factoring account set up and processing can be faster than traditional funding sources
- Startup Businesses have limited credit histories and thus, traditional financing options are limited.
- A business or individual may have had a past credit impairment that prevents them from obtaining more traditional means of funding
- Business Growth may outstrip current credit availability
- Bridge Financing
- Realization of Supplier Discounts
- Preparation for High Season or higher volumes
- Crisis Management
- Debtor-in-Possession (DIP) Financing may be required
- Current Federal Tax liens may restrict usual funding sources
- The referring financial institution can retain other retail, consumer, and private banking relationships because factoring AR proceeds can be returned to the institution via wire or ACH. The referring party can also still take a first - or second secured position and/or subordinate to the AR factor.
- The commercial AR Factor acts in many ways as a collateral monitor agent because they collect, account and report on receipts and disbursements. Upon client authorization, this can be reported to the referring institution.
- AR financing does not have to be that expensive and it can function as an intermediate solution. A financial institution may season and later migrate the commercial prospect to their commercial portfolio.
The information contained in this article is general in nature and is not legal, tax or financial advice. For information regarding your particular situation, contact an attorney or a tax or financial advisor. The information in this newsletter is provided with the understanding that it does not render legal, accounting, tax or financial advice. In specific cases, clients should consult their legal, accounting, tax or financial advisor. This article is not intended to give advice or to represent our firm as being qualified to give advice in all areas of professional services. Exit Planning is a discipline that typically requires the collaboration of multiple professional advisors. To the extent that our firm does not have the expertise required on a particular matter, we will always work closely with you to help you gain access to the resources and professional advice that you need
In addition to our business growth and value maximization practice, we at Business Design, LLC direct your attention to our Transportation / Logistics Management programs and our International and Domestic Receivables financing products. These products should be of significate interest to Business owners, Private Equity partners and C Suite officers. Our Web site and welcome your email@example.com
Cliff Duffield: 913 302 6937