This uses up all cash and limits growth. Temp agency contracts with a factoring company to purchase each invoice they generate. Making payroll is no longer an issue and they can now hire more temporary help to fuel growth. Chain takes 60-90 days to pay importer. Importer starts relationship with factor.
Factor pays supplier direct when discount chain is invoiced.
Importer negotiates more favorable terms and pricing with overseas supplier. This new pricing more than makes up for cost of factoring. These are just some examples of what accounts receivable factoring from BankersMutual can do for a growing business. Please contact us by telephone, contact form or e-mail if we can answer any additional questions.