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    11 Replies Latest reply on May 11, 2009 4:52 PM by Cash_in_Hand

    Looking for receivables to finance

    Grow_Safely Newbie
      I'm with a $1.5 billion international firm and we're looking for receivables to finance. Does anyone know of any companies that would like to convert their receivables into immediate funds, instead of waiting for payment when the receivable is due? This type of financing is know as "factoring" and is especially beneficial for growing companies that need cash to finance expansion, take advantage of supplier discounts and even build their own credit ratings.

      Thanks.
        • Re: Looking for receivables to finance
          Ed O'Gee Adventurer
          My cousin Chad, owes me $50 bucks. You can buy his debt from me for $49.50.

          No seriously, what are the typical fees involved in your transactions? How do you guys manage the risk? I have clients that are struggling with receivables and cash flow management so I'd like to understand how services like yours could help.
            • Re: Looking for receivables to finance
              Grow_Safely Newbie
              Ed,

              There are basically two costs to factoring - the factoring commission and the interest charged on advances against receivables. Factoring commissions are a percentage of factored volume. The rate is based on: Factored sales volume, Average invoice size, Terms of sale, Number and type of customers. Interest on advances is charged monthly based on the average daily amount advanced. It is tied to a major rate index and is comparable to any short term revolving credit interest charge. Factoring is different from bank financing in a couple of ways. Since factoring, unlike lending, results in the purchase of accounts receivable, it doesn't show as a debt on the client's balance sheet. Also, advances are based on the credit-worthiness of the client's customers, not it's own credit situation.

              Benefits include:
              Protection from credit losses. We largely eliminate bad deb for clients. We do the investigation for each client and determine the credit-worthiness of it's customers. On all eligible receivables the client transfers the risk of customer non-payment to us.
              Increased borrowing power and increased cash flow
              Factoring provides a similar benefit to the client as selling on a COD basis.
              Improved collections
              As the owner of the invoices, the factor performs the collection work. The factor takes advantage of it's size, collection experience and customer relationships to speed up the process, allowing the client to benefit from better cash flow.

              Please let me know if any of your clients could benefit from this type of financing.

              Thanks.
                • Re: Looking for receivables to finance
                  LUCKIEST Guide
                  Grow, Good Marketing. There are many on this web site that will be getting in touch with you and your company.
                  There are many companies that have receivables and need to turn them into cash.
                  Good luck, LUCKIEST
                    • Re: Looking for receivables to finance
                      Grow_Safely Newbie
                      LUCKIEST,

                      Thanks for the note. We're looking to do business, so I hope I can help some of the small and medium sized companies grow their business safely.

                      Factoring is just one of the products we offer.

                      We do a huge amount of Credit Insurance. Credit Insurance insures Accounts Receivable against virtually any contingency that would make your customer unable to pay. By shifting the risk to the insurance company you are better able to extend larger lines of credit to your customers. Larger lines of credit mean more sales. The cost of this type of insurance is so small that the additional sales done often pays for the cost of the insurance.

                      You should also know that lenders love Credit Insurance. We work with BOA and all the other banks. When we insure the A/R a lender is ofter able to offer more favorable terms and or pricing because the risk is guaranteed by insurance. Banks often will not lend against foreign A/R, but with insurance, the often will. I have helped close loans that would not have taken place without the insurance in place.

                      We are also one of the largest Collection Agencies in the world. We collect here in the US or just about anywhere in the world. We are very effective, because often times we are insuring the A/R. If we can't collect well, we take losses. Since we have offices is 60 countries, we can collect foreign A/R. We know the local laws and speak the local language.

                      If anyone is interested in any of these products, please contact me (212) 560-0419 and I will be glad to assist you.

                      Regards,

                      Grow_Safely
                    • Re: Looking for receivables to finance
                      Ed O'Gee Adventurer

                      I am passing one of my clients to you - they are also out of New York City and based on your address they can't be too far from you either. These guys are building expeditors, who work with the city and the various boroughs to manage the paperwork for architects and contractors. They actually were looking for professional debt collectors, but I think your firm makes more sense. They did a million two in sales last year (All with my brilliant coaching of their sales staff) I assume this is in line with what you consider small to medium sized business?

                      Who is the contact person at your firm? Is it Mike?
                  • Re: Looking for receivables to finance
                    CEO Space Scout
                    If you haven't already, you might also post this request at ceospace.biz in the forum under NEED.

                    Just keep it shorter, like we are looking for clients who are in need of our services and we offer .....etc.

                    You can do that for free. If it sounds like an ad or classifed or sales pitch, it might be removed.

                    Only post it in the forum once.

                    Good Luck
                    • Re: Looking for receivables to finance
                      Tony3143 Newbie
                      If your company accept credit cards, I can provide you with the capital you request by October 17, 2008.
                      Call 877-700-7947 ext 1232 or 1480. Ask for Tony!
                      • Re: Looking for receivables to finance
                        josh_B2B Wayfarer
                        We can help out with any sort of accounts recievables financing. Give me a call if you'd like to discuss things further.

                        Josh

                        B2 Business Finance
                        704.900.7003
                        jbernstone@b2businessfinance.com