YOUR CAPITAL SOURCE
Factoring
Access cash by factoring accounts receivable
Tap into unpaid accounts receivable, purchase orders, merchant cash advance, and contract financing through factoring. A factoring firm will buy these assets from you, accelerating your cash flow and the velocity of your business.
Factoring companies allow business owners access to cash tied up in long lead repayment contracts. A longtime secret of the apparel industry where repayment starts at 30, 60, 90 or more days from the date goods received. Factoring has expanded to meet the needs of business owners in many other categories, from raw goods to service industries.
Accounts Receivable
Many manufacturers offer extended payment options to retailers to reduce the immediate cash pressure on customer facing businesses. This can leave the manufacturer cash strapped with high dollar amounts owed.
Enter Factoring of accounts receivable. These large sums can be accessed. The factor will purchase the debt owed, providing a sizeable down payment, then will pay the balance, minus their fee, after collecting based on the original terms established in your contract.
Purchase Orders
Even purchase orders can be factored. Of course, earlier stages have higher risk involved with order cancellation, returns, or other alterations to an initial order.
How can you handle this? Order history demonstrates the likelihood of changes or alterations. We work with you and the factor to determine terms for your contract to reach a fair agreement between you and your factor.
Limited Recourse Factoring
Low or no recourse factoring is an agreement that the factor will not collect from you, the manufacturer or distributor, should the customer fail, in the end to pay. These agreements may cost more in fees, depending on the credit of your customer, but they provide you greater security, because you retain more or all of the amount paid when the purchase order or invoice was bought by the factor.
Contract Financing
Have you recently closed a large contract but need funds to upgrade infrastructure?
Are you a service provider? You may factor contracts, removing billing from your responsibility and accelerating your cash flow.
As contracts are closed, add them to your factoring account or keep them separate, depending on the contract you create.
Let us know about your business and financing objectives.
New Market Commercial Funding
25550 Grand River Avenue
Redford, MI 48240
info@newmarketfunding.com
855-215-6092
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