Traditional factoring, also known as non-recourse factoring is available for both domestic and import / export situations, and provides your business with outsourced credit and collection services as well as optional funding. Many companies need additional cash flow to support seasonal demands, growth, and more. Traditional factoring is one of the oldest forms of business financing in use by many large well-known companies, and is an option that offers extended protection from credit risk of your approved customer or account debtor.
How Traditional Factoring works
Prior to shipping an order or providing services to a customer you can contact our credit department to determine if the customer is credit approved. You then determine whether or not you wish to ship or provide services up to the credit approval or beyond. Regardless of the credit approval, Crestmark may make advances up to 90% of the invoice amount within 24 hours. The invoices that are credit approved will be paid to you at maturity even if the customer has financial inability to pay as Crestmark has assumed the credit risk of the approved invoices.
Our professional and efficient invoice management team follows up to ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release unfinanced amount to you, less an administrative fee. And, with our timely detailed web-based reporting, you can check for payment 24 hours a day, seven days a week.
This traditional/non-recourse factoring process will free up valuable resources and allow you to do what you do best including generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of damaged goods, lost shipments, misplaced or disputed invoices, or keeping payments current.
And, because traditional factoring allows you to access more capital as your business grows, or less if you need less, you can ask us to either ramp up, or scale back on the number of invoices we finance.
Traditional Factoring Highlights
|Sales Volume||Start-ups to $100 Million|
|Business Credit Type||A/R Invoice Financing|
Inventory, Machinery/Equipment Financing
International Letters of Credit
Tri-Party Supplier Finance
|Advance Formula||Up to 90% of eligible Accounts Receivable|
|Advance Frequency||Weekly (or as often as daily)|
|Services||Customer investigation and approval|
Credit protection against bad debt
Accounts receivable bookkeeping
|Benefits||Easy to transition back to conventional banking|
Receivables support allows you to focus on your core business
|Crestmark’s Traditional Factoring Benefits||Competitive pricing|
Fast response time:
Proposal turnaround within one day
Closing in as early as 2 weeks
Is Traditional Factoring The Right Solution For Your Business?
No two businesses will have the same working capital. Let Crestmark’s experienced working capital professionals help you determine what you need and how we can best help make that happen. We have many professionals with experience in diverse industries who can assist you with specific questions and guide you through the financing process.