Factoring Invoices is a great Cashflow Solution for Importers and Wholesalers

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 an Importer and a wholesaler in the U.S. This company designed and imported trashcans to the large “Big Box” retailers so AR Financing was vital…let’s call them the “Trashcan Company”.  PMF Bancorp, the name of our factoring company, provided the Trashcan company with advances on a daily basis so they could pay their manufacture and employees timely. Because the large “BigBox” retailers paid so late, the cashflow for our Trashcan Company could not keep up with timely payments to their manufacture and employees.  The AR Financing (or Factoring invoices) that PMF Bancorp provided kept the Trashcan Company’s credit in good standing.  The third positive item that resulted from PMF Bancorp’s factoring invoices for the Trashcan Compa discounts from their vendors due to early payments due to their improved cashflow.    AR Financing allowed this company to grow 300% in 6 years… a real story as I am the portfolio manager.