Traditional Factoring
Traditional factoring, also known as non-recourse factoring is available for both domestic and import / export situations, and provides your business with outsourced credit and collection services as well as optional funding. Many companies need additional cash flow to support seasonal demands, growth, and more. Traditional factoring is one of the oldest forms of business financing in use by many large well-known companies, and is an option that offers extended protection from credit risk of your approved customer or account debtor.
Traditional Factoring Highlights
| Sales Volume |
Start-ups to $100 Million |
| Business Credit Type |
A/R Invoice Financing
Inventory, Machinery/Equipment Financing
International Letters of Credit
Tri-Party Supplier Finance |
| Advance Formula |
Up to 90% of eligible Accounts Receivable |
| Advance Frequency |
Weekly (or as often as daily) |
| Services |
Customer investigation and approval
Credit protection against bad debt
Accounts receivable bookkeeping
Customer collection
Cash management
Web-based reporting |
| Benefits |
Easy to transition back to conventional banking
Receivables support allows you to focus on your core business |
| Crestmark’s Traditional Factoring Benefits |
Competitive pricing
Fast response time:
Proposal turnaround within one day
Closing in as early as 2 weeks |
How Traditional Factoring works
Prior to shipping an order or providing services to a customer you can contact our credit department to determine if the customer is credit approved. You then determine whether or not you wish to ship or provide services up to the credit approval or beyond. Regardless of the credit approval, Crestmark may make advances up to 90% of the invoice amount within 24 hours. The invoices that are credit approved will be paid to you at maturity even if the customer has financial inability to pay as Crestmark has assumed the credit risk of the approved invoices.
Our professional and efficient invoice management team follows up to ensure that your customer pays according to your invoice terms. Once we receive your customer payment, we’ll release unfinanced amount to you, less an administrative fee. And, with our timely detailed web-based reporting, you can check for payment 24 hours a day, seven days a week.
This traditional/non-recourse factoring process will free up valuable resources and allow you to do what you do best including generate new business. Receivables management is proven to shorten payment turnaround time, which in turn, ensures better cash flow for your company. It also facilitates increased communication with your customers in a positive and professional manner, thus allowing you to stay on top of damaged goods, lost shipments, misplaced or disputed invoices, or keeping payments current.
And, because traditional factoring allows you to access more capital as your business grows, or less if you need less, you can ask us to either ramp up, or scale back on the number of invoices we finance.
Is Traditional Factoring The Right Solution For Your Business?
Your business is unique with working capital needs all its own. Our professional, experienced Business Development Officers will work with you to understand what best fits your business and cash flow needs, and a team of financing specialists will create a working capital solution specialized for you.
Call us today for more information about traditional factoring or use our easy apply online form.
Or if you’ve got any other questions, fill out our contact form.
We’ll have a response to you in no time at all.