Financing Receivables for the Garment & Apparel Industry

Prior to the Great Depression of the 1930s, invoice factoring was a financing tool that was used almost exclusively in the textile and garment industry. Today, factoring companies provide services for virtually all mainstream industries.


What the trendsetters in the garment industry knew years ahead of other industries in the U.S. was the powerful financing tool that could help their businesses meet payroll, allow them to take advantage of supplier discounts, and increase liquidity to maintain growth.

The cash flow challenges that are still prevalent in the garment industry stem from the fact that companies have extensive upfront expenses to cover labor, materials, production, and distribution of their product. Once the garments are delivered – credit is typically granted, which creates a longer payment lag equaling weeks or even months. Meeting operating expenses, or even financing the next job, becomes a challenge due to funds being tied up in accounts receivable. Apparel industry factoring is an arrangement that is specifically designed for companies operating in the fashion sector.

Textile World has compiled this outstanding list of tips that may assist in improving your business’ finances, “Five Keys To Good Cash Management”.

Imagine what your business would look like if you could take on more business and increase sales with larger companies that require extending terms beyond 30 and 60 days. When cash flow is not affected by lagging payments, you can continually produce bigger orders. By financing receivables, you will have access to cash on hand allowing you to continue to grow and thrive. Consider factoring one more tool added to your toolbox to create a successful garment company.

If you’re ready to leave all your cash flow concerns behind, give us a call today at 1-855-236-4936 or complete a rate form and a factoring specialist will get in touch away.

Leave a Reply