We purchase a company’s accounts receivable invoices, notify our clients’ customers to pay us directly and assume the credit risk for non-payment. We work directly with companies seeking financing as well as through a network of financial brokers, accountants and lawyers.
Transaction Size: Our typical transaction ranges in size from $1 million to $50 million in receivables on an annual basis.
Industry Focus: We are active in most industries where companies sell a product or service and their customers have good credit. We do not fund in the medical and construction industries.
Underwriting Criteria: In evaluating a company, we look closely at the credit worthiness of our clients’ customers. As a factor, we are less concerned with the strengths and weaknesses of a company’s balance sheet. In fact, we consider companies with a negative net worth, companies that are losing money and even companies in Chapter 11 bankruptcy for factoring. Companies with little or no credit history may qualify for factoring, provided they have credit-worthy customers. Again, our primary concern is the strength of the company’s accounts receivable and our ability to purchase the accounts receivable free of any bank liens. Thus, companies with a bank loan secured by its accounts receivable may not qualify for factoring unless the bank agrees to release its lien.
Use of Funds: Companies need capital for a variety of reasons. We provide funding for a wide range of uses, including:
• Project Financing
• Business Growth Financing
• Business Acquisition Financing
• Bridge Financing
• Financing Working Capital Needs
• Realization of Supplier Discounts
• Preparation for High Season
• Crisis Management
• Debtor-in-Possession (DIP) Financing
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