TAD's are not to be confused with factoring. While factors purchase receivables, TAD's are negotiable instruments which replace receivables. TADs are an effective sales tool that positions your company ahead of the game. With TADs, you can increase your customer base and sell more to everyone, including businesses with marginal credit. You decide when you need to use TADs and with which customer.
TADs are the most flexible finance and sales tool available to businesses today.
The TAD program fees may be paid by the buyer, the seller, or both, depending upon what the companies agree to do. They are also a more cost-effective alternative to letters of credit. As a selling tool to new business prospects. By offering much better payment terms they have an advantage over their competitors. The business may have customers who would like to pay on time, but for a variety of reasons, are often late.