Debtor-in-Possession Financing – Funds for businesses in a reorg.
Our factoring offering can be the ideal source of financing for a business in the midst of a reorganization.
Underwriting is focused on the quality of our clients’ accounts receivable and not their performance, which enables us to fund businesses experiencing financial hardship, including Debtors-in-Possession.
Program Overview
$100,000 to $10 Million
Competitive Advance Rate
Non-recourse
Flexible Term
Most businesses with strong customers are candidates.
We fund difficult deals:
New Businesses
Highly Leveraged
Reporting Losses
Customer Concentrations
Weak Personal Credit
Character Issues
We can quickly advance funds against outstanding accounts receivable to qualified businesses. Contact me today to learn if your client could benefit. Chris Lehnes 203-664-1535 clehnes@chrislehnes.com Request a proposal
This manufacturer of food ingredients had difficulty stabilizing post-pandemic. Significant reported losses resulted in bank pulling their line of credit. We will replace the line with an Account Receivable Factoring facility until a buyer for the business is found. Our non-recourse accounts receivable factoring facility will have no cap and will grow automatically as the business stabilizes and the AR balances grow. We ignore the financial strength of our clients and focus on the credit quality of their customers. Since this client sells to some of the largest food producers in the world, they are an excellent match for our program and could be funded as quickly as a week from acceptance of our non-recourse factoring proposal.
Video: The Basics of Factoring. What you need to know.
What is Factoring?
Factoring is the sale of a company’s accounts receivable to obtain working capital. Factors are typically more focused on the quality of a company’s accounts receivable than the company’s financial performance, which can make factoring the perfect alternative for a business that is struggling to obtain traditional loans but has a strong customer base.
Know the Lingo A true factoring facility is not a loan, so it pays to familiarize yourself with some of the basic factoring terminology, which differs from lending.
A factoring facility can be structured several ways. While this presentation will not attempt to describe every nuance of factoring, you should know a couple key differences recourse versus non-recourse and notification versus non-notification.
Recourse vs. Non-Recourse
With recourse factoring, if one of your client’s customers is unable to pay an invoice or does not pay in a specified amount of time (usually 60 or 90 days), the client is responsible and must repay the advance received.
With non-recourse, the factor takes on the customer’s credit risk (their inability to pay), but the client remains responsible for most other discounts or deductions their customer may take on an invoice.
A recourse factor will often underwrite both the credit of the client’s business as well as that of its customers, while non-recourse factors are usually more focused on the quality of the accounts receivable and put less (to no) weight on the financial performance of the business.
The result of this difference is a non-recourse factor is generally able to accommodate businesses in a weaker financial condition and a recourse factor may carry a lower price.
Notification vs. Non-Notification
A notification factor is one that will contact each of a client’s customers and instruct them to make payments to the factoring company.
Each invoice issued will usually include instructions that payments must be made payable to the factor. The factor will also usually make collection calls to the customers. With non-notification, the factor may use a lockbox controlled by the factor so that checks can be made payable to your client.
Non-notification factors may have little to no contact with a client’s customers.
Due to the greater control over the flow of cash afforded by notification, this structure is generally able to accommodate businesses in a weaker financial condition.
Contact me to learn more: 203-664-1535 – clehnes@chrislehnes.com
Factoring: The solution to your client’s working capital problem $100,000 – $10 Million Non-Recourse – No Personal Guaranty Most Businesses with Strong Customers are Candidates Start-Ups, Rapidly Growing, Highly Leveraged, Customer Concentrations, Weak Personal Credit/ Character Issues are all Eligible Small Business Lending Account Receivable Factoring Asset Based Lending
Video – Factoring: The Solution to your Working Capital Problems
With interest rates at record highs and depositors seeking better returns for their savings, banks have tightened their lending standards for small and mid-sized businesses.
Our accounts receivable factoring program can be the ideal alternative source of funding for your clients while bank financing remains elusive.
Program Overview $100,000 to $10 Million Non-recourse Funding in about a week Great for Manufacturers, Distributors and Service Businesses
We fund bank turn-downs: Losses Rapidly Growing Highly Leveraged Customer Concentrations Weak Personal Credit Character Issues
In about a week, we can help qualified businesses by funding against accounts receivable, providing the liquidity needed until bank financing becomes available.
Contact me today to learn if your client is a fit. Chris Lehnes Factoring Specialist 203-664-1535 clehnes@chrislehnes.com Connect on LinkedIn
Our Accounts Receivable Factoring program can quickly meet the working capital needs of businesses in the energy industry.
Program Overview $100,000 to $10 Million Competitive Advance Rates Non-recourse Ideal for manufacturers, distributors or service providers.
We fund challenging deals: Losses Turnarounds Highly Leveraged Customer Concentrations Weak Personal Credit Character Issues In about a week, we can advance against outstanding accounts receivable to qualified businesses.
Contact me today to learn if your client could benefit. Chris Lehnes Factoring Specialist 203-664-1535 clehnes@chrislehnes.com Connect on LinkedIn
Oil & Gas, Solar, Electricity, Wood Burning; Furnaces; Solar Panels
Spot Factoring – Quick Working Capital – Convert an Invoice into cash Your client may be experiencing a temporary working capital shortfall, unable to meet immediate funding needs for essential expenditures.
With Spot Factoring, they can quickly obtain funding against a single invoice, providing vital liquidity.
Program Overview $100k to $10 Million Competitive Advance Rates Non-recourse Most businesses with strong customers are candidates
We specialize in difficult deals Highly Leveraged Losses Start-ups Weak Personal Credit Character Issues
We focus on the quality of your client’s accounts receivable, ignoring their financial condition.
This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses in as quick as a week.
Contact me today to learn if your client is a fit.
Our factoring program can be a quick source of working capital for businesses which have been declined for financing, but have good quality accounts receivable outstanding.
Program Overview $100,000 to $10 Million Competitive Advance Rate Non-recourse – No PG Most B2B & B2G Businesses are candidates Bank Declines are welcomed!
We focus on the quality of your client’s accounts receivable, ignoring their financial condition which enables us to fund “tough” deals.
This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses in as quick as a week.
Contact me today to learn if your client is a fit.
