EASY TO QUALIFY
Purchase order financing allows your business to fulfill purchase orders you wouldn’t ordinarily be able to accept due to cash flow constraints and lack of traditional collateral. Simply put, if you have orders from creditworthy customers, we can look to finance all expenses involved in purchasing your goods and delivering them to your customer. Importers routinely deal with foreign suppliers that demand advance payment, as well as customers that don’t pay for the goods until at least 30 days after receiving them.
As opposed to traditional bank financing options, this type of financing is easy to qualify for and can be obtained quickly. You will most likely qualify if you have orders from creditworthy customers. If a business isn’t creditworthy, we’ll let you know—consider it a free credit check. If you have a mixed bag of orders, some creditworthy and others not, we can look at the entire portfolio of customers and provide suitable lending options. Since we are not constrained by red tape, we can make our own lending decisions without having to stay within rigid financing guidelines.
OUR CREDIT CRITERIA
While your financials are certainly a factor in our credit decisions, we take broader, non-traditional factors into consideration, including:
- Management expertise
- Quality of purchase orders
- Reliable sourcing
- Nature of goods financed
- Repayment plan
- Industry history and reputation
About Our Factoring
Factoring is a form of asset-based lending that involves the purchase and collection of your accounts receivable. It’s a strategy to put the cash you expect to receive from customers into your hands faster.
Express Trade Capital’s factoring program has five components
- Lending against accounts receivable for cash flow acceleration
- Collections of accounts receivable
- Credit analysis of customers to help you make more informed decisions
- Credit protection to prevent losses due to insolvent or bankrupt customers
- Accounts receivable management, reporting and bookkeeping
Factoring is a way for you to accelerate cash flow and improve collections from customers that owe you money. It’s also a strategy that overcomes the challenge of being unable to obtain a conventional loan because we’ll provide financing based on the creditworthiness of your accounts receivable rather than your financial statements.
Let’s say you have issued $100,000 worth of receivables that won’t be due for another 60 days. We can loan against these receivables as soon as they are created to provide you with up to 80% of their value ($80,000)—speeding up your cash flow and enhancing the ability of your business to grow. You get the balance of the invoice amount when your customers pay us, so you incur no long-term debt.
There are banks that may lend against your accounts receivable, but they do not provide the additional services included without additional cost through our factoring program.
In a nutshell, when you engage us to be your factor, we actually become your accounts receivable department. We handle collections, and provide you with the ability to see and manage all your receivables online. We’ll modernize your accounts receivable and serve as your credit department, performing unlimited credit checks as needed. As an added bonus, we insure your eligible receivables—so you can sleep easy knowing that your customers’ ability to pay will not affect your ability to collect those payments.