Factoring: Working Capital to Survive Another Summer of Tariffs
Are supply chain disruptions causing your clients to become hungry for working capital going into the summer months?
Our non-recourse factoring program can quickly advance against Accounts Receivable to provide the funds needed to help absorb the impact of tariffs on all of America’s trading partners.
Factoring Program Overview:
- $100,000 to $30 Million
- No Long-Term Commitments
- Non-recourse
- Manufacturers, Distributors and most Service Businesses are candidates.
We specialize in challenging deals :
- New Businesses
- Fast-Growing
- Leveraged Balance Sheets
- Reporting Losses
- Customer Concentrations
- Weak Personal Credit
- Character Issues
Contact me today to learn if your client can use factoring to survive a summer of tariffs.
Factoring Specialist | Chris Lehnes | 203-664-1535 | chris@chrislehnes.com
Glossary of Key Terms
- Factoring: A financial transaction where a business sells its accounts receivable (invoices) to a third party (a factor) at a discount. This provides the business with immediate cash.
- Working Capital: The difference between a company’s current assets (like cash and accounts receivable) and its current liabilities (like accounts payable). It’s the capital available to a business for its day-to-day operations.
- Tariffs: Taxes imposed by a government on imported or exported goods. Tariffs can increase the cost of goods and impact supply chains.
- Supply Chain Disruptions: Events that interrupt the normal flow of goods and services from the point of origin to the point of consumption. This can include issues with production, transportation, or sourcing of materials.
- Accounts Receivable: Money owed to a business by its customers for goods or services that have been delivered or rendered but not yet paid for.
- Non-recourse Factoring: A type of factoring where the factor assumes the risk of non-payment by the customer. If the customer fails to pay the invoice, the business that sold the invoice is generally not obligated to repay the factor.
- Recourse Factoring: A type of factoring where the business that sells the invoice is still responsible for payment if the customer fails to pay. The factor has “recourse” back to the selling business.
- Leveraged Balance Sheets: A balance sheet where a company has a significant amount of debt relative to its equity.
- Customer Concentrations: A situation where a large portion of a company’s revenue comes from a small number of customers. This can be a risk if one of those major customers experiences financial difficulties or leaves.