Factoring
With the tightening of the credit markets, it is often difficult to get the coverage needed from just one carrier. Alliant Trade Credit can combine the capacity of multiple carriers together to get you the most protection possible.
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Accounts Receivable Factoring
Accounts receivable factoring is the sale of your accounts receivable (invoices) at a discount off the face value in return for immediate cash. The funding source is known as the factor or trade finance company. The primary benefit is to provide immediate working capital and protect you from business (credit risk) losses. The factor may assume the responsibility for the customer’s financial ability to pay and perform credit, collection and related bookkeeping functions.
How Account Receivable Factoring Works
You deliver a product or service and issue an invoice to your customer. The factor typically advances an initial payment of 70-90% of the invoice amount within 24 hours, less the factoring fee. When your customer pays the factor, the factor pays you the remaining percentage of the invoice, minus borrowing costs.
Factoring Benefits
- Expand your business through increased, dependable cash flow
- Increase profitability
- Protect against losses due to default (optional)
- Reduce purchasing and financing costs
- Outsource your credit and collection management
- Provide accurate and timely credit information on your customers
- Expand export sales
Export Financing Options
Favorable export financing is available in most markets and can enhance your international sales efforts, giving you an advantage over your competition. Through its financial expertise and established lender relationships, Alliant Trade Credit will develop the best export options for your business.
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