Factor Invoices to Help Leverage Financial Assets After Mergers

Merging one company with another or acquiring another entirely is a major undertaking that can take a great deal of time to complete. Even once all the paperwork is done there are a number of tasks that must be completed before the new company is fully integrated with the old. Sometimes the acquired company has assets such as accounts receivables that are not an ideal fit for the parent organization. Leveraging some or all of these assets with the help of factoring receivables companies can provide a surprising amount of working capital while streamlining operations. Even better, the clients who opened those accounts will not experience any variation in their payment schedule.

Preparing for New Operations

Not every company is prepared to take over another organization’s complex AR operations. This is especially true after a merger or acquisition has taken place. Even if the AR team intends to resume operations at some future point, a freeze on new account creation may have to take place. Divesting held accounts with the help of factoring receivables companies is an excellent way to accomplish many tasks at once, such as:

  • Generating a lump sum of working capital that can be used for any purpose
  • Simplifying AR and bookkeeping operations
  • Preserving lines of credit for other financing opportunities

An Alternative Worth Considering

Factoring is an advantageous alternative to traditional financing. A company’s credit rating may have fluctuated as a result of the merger, which can make traditional business loans a less appealing solution. Further, traditional loans can take several weeks and even months to finalize. Factoring can be taken care of in just a few days. Accessing a large amount of working capital has rarely been so simple or so effective.

Preparing for Factoring

You can use our online rate form to get an idea of just how much you can receive through factoring. This will help your financial team make the right decision regarding accounts receivables held by an acquired company.


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