Benefits to You

Attractive liquidity management tool through the early payment option

  • Conversion of accounts receivable to cash through attractively priced, non-recourse sale
  • Frees up borrowing capacity with lenders
  • Speeds access to funds with electronic payments

Positive cash flow benefits

  • Increased cash flow, reduced Accounts Receivable and Days Sales Outstanding
  • Reduced capital costs (e.g., Accounts Receivable carrying costs)
  • Decreased credit and collection risk

Full payment transparency

  • Details on approved payments and their timing
  • Full detail remittance information
  • Certainty of payment

Ability to receive information and payment in a format that best suits your needs

  • Over the web – either statement or report format
Supplier Financing Factoring
Provides cash based upon 100% of invoice value. Provides less cash for each invoice since cash received is based upon on average 70% to 80% of receivables balance.
Cash received early is not considered debt to the supplier. This frees up supplier's credit limits for other uses if needed. Non-Recourse to suppliers. Cash received is considered debt on supplier's financial statements and the factoring program typically needs to be disclosed. The debt and disclosure impact credit ratings and consume credit capacity.
Discount/Interest costs could be lower than what supplier could otherwise obtain since the credit risk from supplier financing leverages "Buyers" credit rating. Interest cost is based upon supplier's credit rating.
More flexibility in receiving cash since cash can be received on a daily basis based upon invoice approval. Less flexibility with program as cash received is typically on a monthly basis.