Traditional Factoring

What is Traditional Factoring?

Traditional factoring, also known as non-recourse factoring, is a trusted and long-standing form of business financing. It is available for both domestic and import/export transactions and offers your business a combination of outsourced credit and collection services along with optional funding. This solution not only helps businesses manage cash flow to support growth, seasonal demands, and other operational needs but also provides protection against the credit risk of your approved customers or account debtors.

How Traditional Factoring Works

1. Credit Approval Before Shipment:
   Before shipping an order or providing services, you can contact our credit department to confirm if the customer is credit-approved. Based on this, you can decide whether to proceed within the credit-approved limit or beyond it.

2. Advance Funding:
   Once an invoice is generated, Crestmont Capital may advance up to 90% of the invoice value within 24 hours. If the invoice is credit-approved, payment is guaranteed at maturity, even if the customer faces financial difficulties and cannot pay.

3. Receivables Management:
   Our efficient invoice management team ensures timely follow-up with your customers to encourage payments according to agreed terms.

4. Final Settlement:
   Upon receiving payment from your customer, we release the unfinanced portion of the invoice to you, minus a small administrative fee.

5. Web-Based Reporting:
   Stay informed with 24/7 access to our web-based portal for real-time updates on payment and invoice statuses.

Benefits of Traditional Factoring

• Credit Risk Protection: Crestmont Capital assumes the credit risk for approved invoices, giving you peace of mind and financial stability.
• Improved Cash Flow: Access immediate funding to support operations, growth, or unexpected demands.
• Outsourced Receivables Management: Free up valuable internal resources while we handle credit approvals, collections, and follow-ups professionally.
• Shortened Payment Cycles: Our proactive management helps accelerate payment turnaround, ensuring better cash flow.
• Scalability: Easily scale up or down based on your business needs—access more capital as you grow or reduce financing during slower periods.
• Enhanced Customer Relationships: Professional communication with your customers helps address issues like damaged goods, lost shipments, or disputed invoices efficiently.

Is Traditional Factoring the Right Solution for Your Business?

Every business has unique working capital needs. At Crestmont Capital, our experienced professionals are here to help you determine the best financing solution for your situation. With expertise across diverse industries, we provide tailored guidance to help you unlock the full potential of traditional factoring and improve your cash flow.

Let Crestmont Capital’s proven expertise and flexible financing options empower your business to thrive. Contact us today to learn more about how traditional factoring can support your success.