This oldest and most traditional of credit risk management tools offers several key benefits especially for manufacturers and wholesalers supplying the retail distribution channel.

Three basic types of factoring:

• Credit risk only contracts whereby receivables are insured but not financed. A key benefit is that this provides for 100% risk transfer by the factoring company (i.e., no deductibles or coinsurance typical of a credit insurance policy).
• Combined risk transfer and accounts receivable management whereby the factor assumes credit risk, as well as collection and cash application.
• Financing alternatives for borrowers who may not be "bankable" credits.

Factoring can be either "notification" or "non-notification", meaning that you as the client chooses upfront whether customers will know that you are factored. We will help you determine the best solution for your needs. We enjoy relationships with all of the major factors and are well positioned to represent you.