Four Industries That Can Benefit the Most from Invoice Factoring

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Invoice FactoringCash flow fluctuations can be challenging for any business. In these uncertain times, however, businesses in many industries are experiencing ups and downs that are hard to predict. One of the most common reasons for cash flow instability is the delay between issuing invoices and receiving payment. Invoice financing, also known as invoice factoring, is one of the simplest ways to overcome this difficulty. Factoring invoices means that you receive immediate payment rather than being subjected to your clients’ payment schedule. Read more

Temporary Staffing Agency Benefits From Non-recourse Factoring

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Non-recourse invoice factoring benefited a temporary staffing agency client when Constar Plastics filed for Chapter 11 bankruptcy. The transfer of risk amounted to over $187,000.00 when Riviera Finance purchased invoices from the staffing company on a non-recourse basis, assuming the credit risk, and subsequent credit loss.

Often times, the value of non-recourse factoring is under estimated, but when extending trade credit to a customer there is a varying degree of credit risk. In this instance, the staffing agency’s customer, Constar Plastics lost a contract with Pepsico and eventually filed for bankruptcy. Read more