“Tanner’s flexible financing solutions have helped us stay on the leading edge of technology as well as assisting us with financing large orders. Tanner has been fast, reliable and great to deal with since 1996!”
Accounts Receivable Financing
Simply put, Accounts Receivable Financing, more commonly known as Factoring, is the exchange of some, or all of your commercial accounts receivable for immediate cash. This widely accepted financing means is used extensively throughout most industries that produce business-to-business invoices such as, manufacturing, distribution, and service related industries. Today, even professional fields, such as, medical and accounting firms are taking advantage of this debt-free financing. Sorry, consumer invoices are not accepted at this time.
With the downward turn in the economy, there's no better time than now, to acquire the working capital you need, without incurring any new debt!
Through Factoring, you can convert your accounts receivable into immediate cash to grow your business, take early-pay discounts, meet seasonal demands, and accommodate new and/or larger clients.
What is Factoring?
Factoring is the sale of your accounts receivable invoices at a discount from their face value to an investor (known as a factor). By selling invoices when they are issued, you are able to collect most of the cash due immediately, rather than waiting 30, 60 or 90 days for payment.
Because this is a transfer of assets rather than a loan, you are not incurring any debt and the factor looks primarily to the security of the asset rather than to your own company's credit rating when assessing risk. Thus, it is entirely possible for you the client, to have no equity, no assets, and no credit history. Factoring is in fact an added-value cash flow tool.
Tanner Financial Services Inc. deliver a level of credit management expertise that is a particularly effective management tool to small and medium-sized entrepreneurial organizations (SME’s). As a long-overlooked and often misunderstood financial management technique, factoring has moved into the financial mainstream.
Tanner’s factoring services can significantly increase your sales and net profit by providing your company with the necessary cash to grow without incurring debt.
Benefits
There is a saying in the industry, and it is worth remembering - factoring is not something you do to your customers, it is something you do for your customers. Factoring allows you to receive your money up front, and it allows your customers to continue receiving your product or service today, but not pay for it until tomorrow. Both sides, not just one, benefit.
Your company’s financial health is fine – it’s just that increased sales and extended credit terms with your customers has expedited the need for increased cash flow. Let’s take a look at the many other benefits to Accounts Receivable Discounting / Factoring:
- Immediate increased cash flow
- Capital available with little regard to a client's credit rating or balance sheet.
- Expanded growth capacity.
- Greater equity and reduced business debt.
- Creates an ability to take advantage of vendors' early payment discounts.
- A greater ability to offer appealing credit terms to attract new customers' and retain existing accounts.
- Company and personal assets remain unencumbered.
- Business ownership is not compromised.
- Company improves its debt-to-equity and debt-to-asset ratios, which increases its creditworthiness and financial strength.
When deciding which invoices you would like to factor, you are in control. You do not have to factor all of your invoices. Tanner Financial Services will attempt to purchase as many invoices as you like, up to a maximum of $50,000.00 per invoice at any given time.
