Distributor Factoring Company
Distributors sometimes offer a 2% discount to their customers who pay in ten days or less. It seems like a logical solution to your working capital issues. While this might work with some of your customers, it will not work with the majority of them, as your customers; also suffer from positive working capital. You need to focus on what you do best, which is growing your business and increasing sales; we will do what we do best, which is invoice factoring. Let us help you with your working capital needs, but providing you with rapid funds for your aging invoice. Factoring is not a debt and it's not a loan, we simply purchase your account receivables at a discount rate. Having working capital brings you new opportunities, such as business expansion, meeting your growing payroll demands, buying new equipment and most of all, it allows you to offer new credit terms to more customers. Many distributors are strapped for cash, making it difficult to offer credit terms to new customers, which equates to lost opportunity for business growth. You can now feel secure, offering longer credit terms and taking on new customers, knowing that you will be funding within 24 hours after the verification process, even if your customer pays us in 90 days. This is why so many Distributors turn to the invoice factoring industry, to solve their account receivable issues.
What's the difference between distributor financing and distributor factoring?
Nothing, it's the same exact thing. Some people are only familiar with the term factoring and other know the program as invoice financing. We use both terms so all parties understand what we are referring to. Both terms in our industry refer to selling your invoices at a discounted rate for immediate cash. This is not a loan, there is no APR. You sell us an invoice we send you your money. Your customers pay us directly. Once this transaction is completed, you sell us the next invoice and we repeat the process.
Distributor financing will solve your cash flow problems
Invoice factoring accelerates the revenues tied to slower paying customers. Alliance One LLC, (a factoring company) advances up to 90% of the aging invoices within 24 hours of the verification process. The purchased invoices becomes our asset, the invoice is collateral. Once your customer pays the invoices in full, the money that is being held in reserve will be released to you, less our advanced fee. Our advanced fee in many scenarios is tax deductible as it is a cost of doing business. We offer distributors financing services to boost your organization’s growth.
Alliance One will purchase your aging invoices for immediate cash. You bill your customers for the delivery of goods, and then forward us a copy of the invoice. We verify that the goods have been delivered and approved, and then we wire you up to 95% of the invoice amount within 24 hours. We hold on to a small reserve until that invoice is fully paid. Once the payment has been made, we release the reserve money back to you, less our discount fee. By using a factoring company, you are now able to offer even longer net terms that you normally would not consider due severe working capital issues. There are also many reasons to use factoring services to grow your business.
Can distributor financing grow your business?
Would it help your companies cash-flow if all of your customers paid their invoices in one day? If so, this is what factoring does for your business. The fact that you are reading the information on this page means you are looking for a better way to finance your company or a new solution to an age old problem. If your company was plush with cash, you wouldn't be here trying to decide if distributor financing is the right vehicle for you to use. Have you ever turned away an customer because they required longer net terms than you are able to offer them? If you offer your customers longer payments would you get more business? Yes, you would but do you have the cash-flow to sustain the wait period? Do you have a large enough credit line with your vendors to get more products if your orders increase? Distributor financing is alternative financing, you sell us an invoice today and we will fund it tomorrow. So, is distributor financing right for your business? We think so.