Factoring

Purchasing accounts receivable, also known as “factoring,” has existed since ancient Egypt and today is an increasingly used financial tool for businesses. By using its accounts receivable as assets (based upon its customers’ balance sheets) a business can increase its cash flow and that often gives the business substantially more economic benefits, which far exceed the cost. Factoring is one of the oldest and easiest methods of generating working capital and expansion financing. Many companies use it routinely and build the cost of it into their products and services.

Factoring is not a loan, it is a purchase of an asset for a discount that provides cash flow for companies. This is very favorable to the selling company as it does not compromise its balance sheet and does not have long-term agreements or delays associated with other methods of raising capital. Factoring allows companies to use their accounts receivable assets to create immediate cash for their capital needs.

Manufacturers, consultants and service providers sell their products and services to other companies and government departments and often are required to accept terms of net 30 to 120 days to receive payment, and so they are willing to discount these receivables to receive cash immediately.

Nautilus is a member of the International Factoring Association (IFA), which assists with up-to-date pertinent data on the industry and provides assistance to companies in finding a qualified factor to purchase their receivables.

The IFA is located in San Luis Obispo, California, and may be found on the web at: www.factoring.org

Advantages of Factoring:

Increase cash flow - with same day funding
Facilitate your company’s growth through liquidity
Outsource and improve your company's credit and collection process
Have up-to-date credit information on all of your customers and their current creditworthiness
Provide funding when a bank will not
Provide credit protection to minimize your company's bad debts

Advantages of Factoring with Nautilus:

Low monthly minimums
Provide personalized and customized service to meet your company’s accounts receivables needs
Most all industry types and start-ups considered
Fast turn around on making credit decisions