Case Study: Capitalizing on Factor Agreements to Obtain Short-Term Financing

Challenge:

Factoring agreements help improve the cash flow of companies that have slow-paying invoices. Typically, a factoring agency will temporarily finance receivables or “purchase” certain business assets for a fee, which provides the company with immediate access to funds to pay for expenses.

When clients use factoring agreements to finance their businesses, Fineman West must forecast their long-term financials so that the company doesn’t default in the instance of a downturn.

Strategy:

Our team compiles projections to determine what the company’s needs will be a year to several years out to make sure that the banking or factoring agreements allow the client to get the correct financing to fulfill sales projections and growth. We ensure the working capital covenants and liquidity are reasonable, and the company can obtain those covenants.

Result:

With a practical factoring agreement in place, clients are able to receive necessary financing for their company’s operations. Ready to transform your business? Contact us today at (213) 688-9898 or info@fwllp.com.