AMI Funding Associates represents both domestic and international Factors, who invest their money, by buying your accounts receivable. The Factors will advance immediate cash for the major portion of the purchased invoice that they factor, which is usually 70 to 80 percent of the invoice value, and then rebate the balance when the collection is made, less the factoring discount fee. There are many benefits to factoring your receivables. Savings are created through the elimination of late interest and late fees, as well as earn a discount on material for payment with cash or in a timely discount fashion. Since factoring is not a loan, there is no debt and therefore does not impact your Consolidated Balance Statement.
Factoring is beneficial to small, medium and large companies including start-up businesses.
A few of the well known companies who factor include George Pacific, Honeywell, Mitsubishi, General Electric and many others. More than half of the Fortune 500 companies factor their accounts receivable. These companies use factoring as a Cash Flow Management Tool, as well as Capital Reinvestment in plant, equipment, people, and material for the continual growth of their businesses. Our funding sources can provide monies to firms which have been awarded a supply purchase order or contract but which either require or desire outside funding in order to deliver on it. Moreover, the only limitation on how many bids any one firms can submit is how many they are physically and administratively capable of generating.