Accounts receivable factoring sometimes referred to as "Invoice Purchasing" is the process of selling your Accounts Receivable / Invoices to a specialty finance company.
Factoring rapidly turns receivables into cash and leads to efficient accounts receivable turnover, eliminating stress, waiting and worrying allowing management to work on growth vs collection issues.
All Factoring Companies are not created equal. As independent consultants Thunderbird Corporate Finance works on your behalf in identifying the most appropriate lender.
Contact Thunderbird Corporate Finance today to help identify the right Factoring Company for your industry and situation Office: 480-217-8781
Factoring / Invoice purchasing Enables Businesses To:
Increases working capital & Improve cash flow
Take advantage of supplier discounts.
Purchase Inventory on potentially better terms
Meet the payroll and tax deadlines
Reduce your collection cost
Improve overall receivable turnover
Additionally there should be no impact on your Balance Sheet & Corporate Credit Profile as you are not taking on debt, but converting an asset to cash.
Who is using This Type of Financing?
Small Companies: Start ups to Established companies
Medium to Large Companies: Even publicly traded companies
Turn Around Situations and Bankruptcy Reorganization
Most all industries selling Business to Business Goods and Services
Businesses with credit issues
Business owners unable to provide personal guarantees.
Factoring should be a temporary solution with the objective of getting back to standard corporate financing options as soon as possible.