Turn the pending bills into fast cash

Leading on a business is not as easy as one might think. It’s true that these days everyone wants to become his/her own boss and lead the market and hence people end up being an entrepreneur. But, have you ever wondered what if you are leading a business of electronics and your clients don’t end up paying you for certain days which thereafter starts impacting your business growth. Yes, this is true. Most of the businessmen experience this issue, the issue of outstanding invoices. The clients take their own time to give the payment to the businessmen. To overcome such issues there is a terminology known as invoice factoring that would definitely help you out in growing your business to a next level.

What exactly is Invoice Factoring?

It is the best solution that shall convert all your invoices that are unpaid into immediate cash. This terminology can also be called as invoice financing or receivables financing. The three parties that are involved in this entire process are:

1. The company who is responsible for issuing the invoice i.e. you the "businessmen"
2. The customer or also known as the Account Debtor who currently owes the payment
3. The financing company or also known as the factor, the one who supplies with the cash

How does the entire process of the invoice factoring work?

We at PMF Bancorp deliver our service or a product to our clients/customers, an invoice is issued on the name of the customers. After this, the company sells it’s invoice to PMF Bancorp aka factor and receives immediate cash i.e. approximately 70-85% of the invoice value. With this received cash, a company can grow to next level or take even more work and do many valuable things. Now, once the customer or the debtor pays the pending invoice, a rebate is received to the business minus the fee that we as a factor hold.

The point here is that in the end, all the three parties are benefitted.

A simple example that shall solve all your queries is:

• A wholesaler company in Los Angeles submits say around an invoice of $ 10,000 to PMF Bancorp
• Now, the invoice is processed by PMF Bancorp and $85,000 is transferred to the businessmen’s account. ($ 10,000 * 85%[this is the advance rate])
• Say in 30 days the customer pays the pending amount i.e. $10,000
• Fees that we take for 30 days is $2,000 which is $10,000*2%
• Now here the factor rebate is $13,000 ($15,000-$2,000[fee])

PMF Bancorp provides you instant help that too at very low rates. The goal of Bancorp is to solve all the cash crunch problems of it’s clients in a short span of time.

In 1985, 1st PMF Bancorp was founded as a family run lender providing factoring, but as our clients’ businesses expanded globally.