Benefits of factoring |

By factoring your accounts receivable, your company can:


1. Double Your Inventory Turnover

EHB Capital’s research, available upon your request, has validated that the inventory turn will double.

2. Capture Additional Capital

Finance capital expenditures or pay short- term liabilities

3. Stabilize Cash Flow

Create more predictable payments and forecast more effectively 



In comparison to borrowing from traditional banks, factoring provides the following added value:


1. Less Time Consuming

Less time spent on Underwriting Process, Individual Withdrawals, and Preparation of Bank-requested Reports

2. Fewer Incremental Costs

No Origination Costs, Closing Costs, Attorney Fees, or Audit Fees

3. Fewer Collateral Requirements

Bank Loans normally require Over- Collateralization of Company Assets

4. Less Restrictive Covenants

No Debt Service Coverage, Capital Raising Limitations, or Restricted Use of Funding

5. More Attractive Balance Sheet

Bank Debt adds to Liabilities while Factoring removes Accounts Receivable from the Balance Sheet in Return for Cash