Invoice factoring is a financial tool whereby a company sells its outstanding accounts receivable at a discount 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. Selling your accounts receivable to a company like Summar is called Factoring.
There are two types of Factoring:
Recourse Factoring is when your factoring company purchases your receivables but your company must buy back any receivable that the factor cannot collect payment on.
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 purchases your receivables on a firm basis and will usually assume the risk of non-payment solely for credit reasons.
Summar provides non-recourse invoice factoring facilities that range from $100,000 to $5,000,000.
Companies Who Benefit From Invoice Factoring:
Early Stage Companies or Start-ups
Companies with High Concentration of Sales to a Single Client
Companies with IRS Tax Liens
Companies Turned Down by Banks for Financing
Companies Showing Operating Losses
Companies in Need of Payroll Funding
Companies Facing a Turnaround
This service typically includes:
Industries We Serve:
Beauty & Cosmetics
Exporters & Importers
Floral Importers & Wholesalers
Food & Beverage
Marketing & Advertising
Machinery & Equipment
Oil & Gas
Seafood Importers & Wholesalers
Temporary Staffing Agencies
Technology & Communications