Invoice Factoring, or Accounts
Receivable Factoring, is using your invoices as a way to receive instant capital without losing any control or interest in your organization.
Nearly instant approval and no wait time make our Factoring solutions a highly effective tool in your competitive arsenal.
We make it possible for your company to receive instant funding for whatever need or project you are working on. From making payroll, to getting cash immediately, to covering expenses or growth, we can help.
Case Study: How Factoring Can Revitalize an Organization
The problem:
A high tech firm with good sales and service began experiencing a cash flow shortage. Bad debt and outstanding receivables (DSO – day sales are outstanding) were over 100 days. Millions of dollars in disputed invoices were being lost annually, not due to customer complaints but due to the age of the outstanding invoices. Additionally, the company’s stock price took a large hit due to the high DSO as stock market analysts predicted that the high DSO was because their products did not work and they were not being paid or that the products were delivered on a trial basis and not true receivables.
The Solution:
Over an 18 month period, the high tech firm hired a factoring company to manage its accounts receivables. The factoring company took over the entire department and increased to firm’s cash flow resulting in increased profitability, stock price and diminished bad debt. Analysts viewed the decreased DOS as a sign of product acceptance in the marketplace and the increased cash on hand allowed the firm to decrease their bad debt. Additionally, the firm greatly decreased their disputed invoices in turn increasing their total profitability.
