Factoring
COMPANIES CAN TRADE CASH FLOWS LATER FOR CASH FLOWS NOW
Export Receivables & Domestic Receivables in USD
“Accounts Receivable Finance”, also called Factoring, is a method of selling receivables collectables in 30-120 days typical of a customer payment in order to obtain cash for company operations now. Accounts receivable (A/R) are amounts owed by customers for goods and services a company has sold to those customers.
This scheme of financing can be structured in a variety of formats that best accommodate to both the Lender and the Borrower, since a sale of invoices one by one, a sale of all current and future invoicing to one customer account, or to utilize its receivables (e.g., customer payments) as collateral in exchange for a credit advance.
Accounts receivable financing has several other benefits, including:
1. Total customization and management options. Take what you need when you need it.
2. Your financing will match the true value of your receivables.
3. You can expect up to 100% of the payment in advance.
4. The decision is based mainly on your customer’s creditworthiness, not wholly on the degree of your business’ financial strength.
5. Your clients are usually unaware of the details of the financial arrangement.
6. When utilized as collateral, you can double cash the funding. Cash from the credit now plus cash from customers´ payments in 30-120 as collections.
