On the other hand, equity does not entitle equity providers to any claim to a company's assets or require that company to make scheduled payments. Common equity typically allows our clients to achieve balance sheet objectives in a tax-efficient manner and is used in a variety of transactions including project financing and limited partnerships. Common equity investments can be structured for single assets. Factoring Factoring allows you to sell your accounts receivable, which provides immediate operating capital tied to a flexible borrowing base. Factoring is the preferred method of working capital financing for companies in the textile, apparel, and furniture manufacturing industries, and for companies that cannot afford to have cash tied up in receivables for more than 30 days.
Factoring eliminates the time, expense and risk of collecting receivables.
It is an appropriate way to shed ownership of your receivables if you are willing to release control of part of your customer relationships to a third party. A true tax-oriented lease in which the lessor retains all tax benefits of ownership but the lessee has all the operating benefits of ownership. The lessee has the option at lease expiration to purchase equipment at fair market value, renew lease for a specified period or return the equipment to the lessor. Floor plan financing is collateralized with a primary lien on the specific items of inventory. GE Capital and Penske Truck Leasing have combined to offer a unique leasing program - TeamLease.