Search US website

Experience with factors

Do you have any experience with "factors" for short term to finance purchase orders?

3 Responses

  • Mar 17, 2010

    Member

    If you're interested in factoring, you should check out The Receivables Exchange, per the Amex OPEN story below. All of the liquidity benefits without customer notification and it's a competitive marketplace so you have investors competitvely bidding to give you the best price. You literally drive down your cost of capital as you continue to trade - the more you trade, the more you save. Check it out.
    http://www.openforum.com/idea-hub/topics/money/article/a-new-approach-to-receivables-financing-anne-field

  • Mar 17, 2010

    Owner/President

    I know of companies that have done factoring. You are giving up some cash to get your cash quicker. The factoring company's fees are usually high - 20%. They assume the risk of collection, but you get your cash quicker.

  • Marc Spangenberg

    http://www.linkedin.com/pub/marc-spangenberg/15/374/557
    linked in badge

    President at Biz Loan Central

    (Mar 23, 2010)
    Typically factoring is done on invoices for work that has already been performed. So another suggestion is to factor older invoices to finance the newer work orders. Additionally, you can monetize your A/R on an ongoing basis and accelerate the payments for about the same cost as accepting a credit card. Let me know if I can help.

What do you think?

Related topics