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.
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2. Capture Additional Capital

Finance capital expenditures or pay short- term liabilities
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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
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2. Fewer Incremental Costs

No Origination Costs, Closing Costs, Attorney Fees, or Audit Fees
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3. Fewer Collateral Requirements

Bank Loans normally require Over- Collateralization of Company Assets
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4. Less Restrictive Covenants

No Debt Service Coverage, Capital Raising Limitations, or Restricted Use of Funding
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5. More Attractive Balance Sheet

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