What is Business Factoring?

If you are currently selling product or services to your customers and offering terms of 30 days, or even longer, we can provide immediate financing and ease the capital crunch. Based on the value of those outstanding invoices, our principals can evaluate your unique scenario and in fact deliver a solution very quickly. That's our job. We write cheques.

These are some of the financing solutions we provide to our clients every day:

1. Accounts Receivable Financing

Typically referred at as "factoring", AR Financing is neither equity nor debt, yet strengthens a balance sheet - and control of the business always stays with the owner. It is a trusted and effective method of both financing short-term cash-flow and outsourcing the administration of credit and the task of arduous collections.

Factoring is a time-honoured financing solution that offers many advantages while allowing business owners to focus on operating and building their client base. As opposed to banks, for instance, we offer flexible underwriting. We don't require the lengthy process, personal credit score, business history and restrictive covenants necessary for traditional debt.

Generally, we begin funding about a week after the application process begins. We support start-ups and high growth businesses, as well as businesses recovering from financial difficulties. Our ability to fund and service your business can keep up with the demands of growth without having to requalify you for a larger loan and charge any subsequent fees.

Your balance sheet remains strong, most importantly. Because we actually purchase the invoice from you and do not take an equity position, you incur no debt and keep control of your own business.

Additionally, we provide a thorough credit analysis on all potential and existing customers so that you can make an informed decision on extending credit, thereby minimizing the risk of bad debt.

Furthermore and finally, our professional collections team relieves you of the considerable time, energy and effort and expense required to follow up with customers to ensure timely payment.

2. Purchase Order Financing

Purchase Order Financing is the perfect solution for short-term funding requirements. It can be used to finance the purchase or the manufacturing of specific goods that have already been sold. We enable this process by issuing letters of credit or providing funds that allow our clients to secure the inventory they need to fill their open sales orders.

Through purchase order financing, we also support both domestic and international transactions, and clients enjoy the working capital needed to grow sales and take advantage of profitable opportunities that are larger than they can otherwise support. We are not a bank and are not bound by the restrictions necessary for traditional lending products. Our focus is the underlying transaction and its economic and commercial viability.

Purchase Order Financing is used by manufacturers, distributors, importers and exporters. It can be used for payments to third-party suppliers for goods, issuing Letters of Credit, and for making payments for direct labor, raw materials and other directly related expenses.

Our clients consider Purchase Order Financing if they lack either sufficient capital or international expertise to complete their transaction. With respect to the latter, they might prefer to reduce foreign risk and in some cases protect the identity of their manufacturer from the end customer. In all cases, however, they appreciate the speed of funding, preservation of equity and increased profits at the end of the day.

3. International Factoring

This form of financing gives business owners the ability to offer open credit terms to foreign buyers who they would normally not be able or feel comfortable selling to without a traditional deposit. Because we fund the invoice upfront and take on the risk, business owners can now increase their foreign sales freely while improving their cashflow.

Foreign receivables are usually underserved assets. Domestic banks or lenders typically consider foreign receivables to be ineligible and do not feel comfortable providing capital availability against these foreign receivables. We lend against foreign receivables, giving the business owner more capital to grow the business and pay expenses.

As business owners and operators, we understand selling to international customers is a huge opportunity, but difficult to manage financially. There are certainly common issues to deal with, whether your foreign customers are taking too long to pay, or no longer willing or can't afford to pay an upfront deposit (and is now demanding open terms), or you are informed by your bank to buy credit insurance that has a high upfront premium, or perhaps your overseas sales are expanding but the prospect of potential write-offs are too daunting. We can help you.