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BridgingFactor Factoring

Factoring (Accounts Receivable Financing)

What is Factoring?

Simply put, Factoring or invoice discounting is the sale of your accounts receivable in exchange for immediate cash. For many businesses, accounts receivable is one of the largest assets on the balance sheet. However, the asset lies dormant until the time of collection, when it is converted into cash. With BridgingFactor, you can easily turn those dormant assets into immediate cash.

When credit terms are extended to your customers, YOU are financing their business. No interest is earned, and cash flow becomes stagnant while you wait for your customers to pay. What is the opportunity cost? BridgingFactor can provide a flexible invoice factoring facility to provide immediate cash for receivables management, operating expenses, growth and more.

Factoring is not a working capital loan. There is no debt repayment, no compromise to your balance sheet and with BridgingFactor, no long-term agreements. We take the time to get to know you and your business, and work with you to create a custom program based on your individual needs. Your account is professionally serviced by a dedicated account manager, who understands your needs. To learn more, please contact us today!

How Does it Work?

When you become a BridgingFactor client, you will be able to send us invoices issued by you to the customers you select, together with all pertinent back-up documentation (whatever you usually send to your customer for payment). BridgingFactor will factor the invoices, and will pay up to 95% of the value of your receivables, usually by direct wire transfer of funds to your account, on the same day as the invoices are received. Your customers will remit their payments to BridgingFactor, and when payment is received, BridgingFactor will complete the transaction by paying you the balance of each invoice IMMEDIATELY.

Why Factoring?

Spend less time chasing your accounts receivable and more time planning for growth. Our fast and flexible factoring and lending solutions allow you to generate the cash flow every business needs, without stringent covenants and/or requirements. Some of the key reasons to Factor are:

  • Factoring is easier to obtain than traditional financing; with BridgingFactor there are NO covenantsand/or financial requirements.
  • Factoring is quick to set up. With BridgingFactor, facilities can usually be implemented in a week or less.
  • Factoring provides predictable cash flow and working capital by eliminating the uncertainty of wheninvoices will be paid. With BridgingFactor, we provide same day advances against your approved accounts receivable.
  • Factoring is essentially a form of “sales-linked-finance”. With BridgingFactor, facility limits areincreased as necessary to support your continued growth, without costly reviews. What would you do with an unlimited line of credit?
  • Factoring provides the cash flow needed to negotiate better prices and/or to take discounts for quick payment and receive preferential treatment from suppliers. In many cases, our clients offset much of the cost of factoring with early payment discounts.

Who Uses Factoring (Accounts Receivable Financing)?

BridgingFactor’s services are available to nearly any business that invoices or extends credit to their customers for services rendered and/or products delivered. Both product and service based businesses benefit from our services. Our areas of expertise include transportation, manufacturing, recruitment/staffing, wholesale and distribution.

Whether your business is a start-up, experiencing significant growth, or in a transitional stage, we can tailor a solution to meet your needs. Please contact us to learn more.