Receivable Funding

Receivable funding, or “factoring,” has been practiced for many years, and is a very viable method for retailers, especially, to manage their cash flow.  VISA is one of the largest factorers in the United States.  When you buy a $100 sweater from your local department store and charge it on your VISA card, the store collects $95 right away from VISA.  VISA pockets the $5 (or 5%) difference.  

In this same manner, businesses can sell their receivables to an investor, who will purchase them at a slight discount (5% is pretty standard, but the percent may vary).  Many businesses set up monthly factoring so that they can better control their cash flow.  Instead of waiting 30, 60 or 90 (or more!) days to collect moneys owed to them, an investor purchases all their receivables on a monthly basis.  This is called flow forwarding.  

A good cash flow broker will set up clients with an ongoing desire to factor their receivables, as this builds residual income.  Good prospects are retailers, especially those who offer in-house financing, and medical facilities like kidney dialysis clinics, ambulatory surgery centers, etc.

Contact: Marilyn Singer at or at 716-570-6361.

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