Factoring Invoices is a great Cashflow Solution for Food Service

Whether your business is large or small, factoring invoices which is sometimes better understood as, AR Financing, is a simple and quick solution to tap into cash that is locked-up in your company.  I will give 3 quick ways that business receivable factoring is a solution through an illustration of a past client that was a food service company.  This company made breakfast and lunches and delivered them to hospitals daily…lets call them the “Food Company”.  PMF Bancorp, the name of our factoring company, provided the Food Company with advances on a daily basis so the Food Company could pay their vendors and employees timely. Because the hospitals paid so late, the cashflow for our Food Company could not keep up with timely payments to their vendors and employees.  The AR Financing (or Factoring invoices) also kept the Food Company’s credit in good standing.  The third positive item that resulted from PMF Bancorp’s factoring invoices for the Food Company was that they were able to receive discounts on their supplies due to early payments from the increased cashflow.  AR Financing allowed this company to grow 300% in 3 years… real story as I am the portfolio manager.