Invoice Factoring

INVOICE FACTORING

Invoice factoring is a financial tool whereby a company sells its outstanding accounts receivable at a discount in order to accelerate its cash-flow. With this financial tool, companies who sell their products or services in a B2B environment (Business to business) and offer their clients payment terms from 30 to 90 days, can obtain an immediate advance of up to 90% of their eligible accounts receivable once your client confirms receipt of the product or service your company is selling to them. Selling your accounts receivable to a company like Summar is called Factoring.

Summar provides non-recourse invoice factoring facilities ranging from $100,000 to $5,000,000 which protect your company against any potential bankruptcy or insolvency from your clients.

Non-recourse factoring: Non-recourse factoring means that you sell your invoices to the factoring company whom, under certain pre-negotiated terms, purchases your invoices without any responsibility back to your company. In other words, the factoring company usually purchases your receivables on a firm basis and will usually assume the risk of non-payment solely for credit reasons. If your Customer fails to pay for reasons different than his credit ability to pay for the invoice (or any other pre-negotiated terms or reasons) your company is still responsible to your client for any dispute they could have and to the factor company over the purchase of that specific receivable.

Companies Who Benefit From Invoice Factoring:

  • Early Stage Companies or Start-ups
  • Companies With High Concentration of Sales to a Single Client
  • Fast-Growth Companies
  • Companies with IRS Tax Liens
  • Companies Turned Down By Banks For Financing
  • Seasonal Businesses
  • Companies Showing Operating Losses
  • Companies Facing a Turnaround
  • Companies in need of payroll funding

Summar can provide your business with immediate cash-flow on your new and open accounts receivable once you have delivered your products or rendered your services to your client. This allows you to take on more business and attract larger customers by offering attractive payment terms.

Industries We Serve

  • Aviation
  • Apparel
  • Automotive Suppliers
  • Beauty & Cosmetics
  • Construction Supplies
  • Consulting
  • Electronics Wholesalers
  • Engineering
  • Exporters & Importers
  • Floral Importers & Wholesalers
  • Food & Beverage
  • Frozen Food