AR Factoring Resolution for Wholesalers in Phoenix
Posted: Aug 29, 2016
These days if you are running a wholesale business and if you are planning to take loan from a traditional bank, you will find it to be a tedious task. Since, you are in to a growing business and have not yet settled in this field, the traditional banks won’t entertain you. For them, they would like to provide loan to the wholesale companies which have a profit history of a minimum of 3 years. Also, not only profit but they look for various other things such as owner credit, costumer concentration and a strong equity. The problem with the wholesalers here is that they are still growing in their business.
In such cases, there is one alternative solution which is gaining popularity these days and the solution is AR Factoring aka Account Receivable Factoring.
The entire process of AR Factoring is quite straightforward. Let’s have a quick glimpse of what exactly happens in this whole factoring process:
- The transaction of AR Factoring initiates with the invoice. The invoice needs to be unpaid and accurate.
- The invoice is then submitted to the AR factoring company when the customer is billed.
- The factor would now validate the invoice and provide you with an advance cash which lies between 70-85%. The cash shall be provided in maximum 48 hours
- In the mean time you can continue conducting your business and keep on submitting more invoices. Your factor will come over and collect the payment from your customers
- Now, once the invoice gets paid by the customers, the factoring company shall send you out a rebate of the invoice minus a minute factoring fee that can lie between 1-2%
If the Phoenix wholesalers are trying to grow their business and are looking for lending partners who can help them out in this then PMF Bancorp is one such capital solution that can solve all their cash problems. The company has been providing funds to the Phoenix wholesalers since 1985.
There is a guarantee that after procuring the AR Factoring procedure, the Phoenix wholesalers shall definitely experience a huge profit in their sales and infrastructure. When we say huge, we mean that it would be around 50 to 80 % profit.
The turnaround time for your queries is maximum 24 hours and in maximum 48 hours you will receive the cash that is required.
So, make your company flexible and gather more clients without worrying about the invoice terms.
In 1985, 1st PMF Bancorp was founded as a family run lender providing factoring, but as our clients’ businesses expanded globally.