During the application and approval process, we focus on the creditworthiness of your customers, while banks focus on your company’s financial history and cash flow. Accounts receivable funding is not a loan; therefore no debt is entered on your company’s balance sheet. We can make a quick funding decision, while banks may take weeks–even months–to approve a loan.
We take into consideration many variables, some of which include your sales volume, your customers’ credit strength, trends in customer payment cycles, invoice amounts, and the current climate of your industry.
Although factoring has become quite common and many customers have probably sent payment to factors before, we are virtually transparent. We understand that customers are the most valuable key to business. We intend for you to maintain your customer relationships, so the way we communicate with them is respectfully designed to protect your goodwill.
The last thing we want is for you to lose a customer. We are not a collection agency, so we will never harass your customers. Maintaining your customer relationships is of utmost importance to us. We only succeed if you succeed.
We have many years of experience working with other financial institutions. Since we must hold the rights to the asset we are purchasing, we are usually able to arrange a subordination agreement or negotiate the release of any liens that may be encumbering your receivables.