| Investopedia: "Receivables is an asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed to the company, even if the debts are not currently due. Receivables are recorded as an asset by the company because it expects to receive payment for the outstanding amounts soon." (credit: investopedia.com) |
In the case of a company that grows rapidly, it easily outgrows its working capital. Factoring is a tool which provides the entrepreneur an opportunity to expand and speed cash flow. He does this by selling his receivables to the factor and drawing an advance prior to the customer making payment. This almost always speeds up cash flow.
Our clients look to STAR Funding for creative, efficient, fast service for discounting receivables. We offer a mix of talents in Letters of Credit, Logistics, Finances and Manufacturing, all of which come into play when servicing our clients' needs. We are committed to helping our clients be successful in today's competitive marketplace.
We are fully vertical in our approach to financing, including our client's purchase orders, inventory and receivables. Our clients tend to be undercapitalized, fast-growing businesses, in a pre-sold position with their customers. We finance start-ups, provided management has a solid resume and business plan. We tend to be transaction and collateral oriented, and place less emphasis on the size and makeup ot the balance sheet compared with traditional lenders.
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