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Accounts Receivable Financing (Factoring)
Accounts Receivable funding (Factoring) is an increasingly utilized financial tool that speeds up the cash flow a company has available. Shield can purchase your credit-worthy accounts receivable at a small discount and convert your invoices (sales) into immediate cash. We can relieve your working capital problem that slow paying customers create. We operate quickly and efficiently to furnish positive cash flow to businesses.
By using our services, clients can attain unlimited growth, and the increase in working capital turnaround translates into larger annual company profit.
The businesses that operate with financing from Shield International all have the same results in common. They are able to build strong healthy foundations for increased growth without losing control of their company.
The benefits of Acoounts receivable Financing from Shield International are:
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Accounts receivable factoring vs. Purchase Order Financing
Accounts receivable factoring can only be used when the work is completed and accepted by the customer. The customer has to be satisfied with the work before the invoice can be financed. Pre-billing for work is unacceptable. The risk is based on the creditworthiness of your business customer.
In contrast to A/R funding, P/O (Purchase Order) funding can be obtained on the signing of a valid purchase order, before delivery. The goods need not even be manufactured yet. A valid order to purchase is acceptable. Pre- billing is acceptable
Purchase order financing (P/O)
Purchase Order Financing ( PO) is most needed when cash flow reserves become insufficient. An example is: Your suppliers want you to pay C.O.D. and your buyers want to pay you on terms of 30 to 60 days. You have no cash flow during manufacturing, while the goods are in transit, and until your invoices are paid.
With Purchase order financing through Shield, we can resolve this dilemma. Our funding pays for the cost of your goods directly to your supplier and frees up your cash for other critical business expenses.Shield provides purchase order finance, enabling companies to take advantage of sales growth opportunities that are larger than they can finance internally, and to overcome the lack of working capital to get deals done. We have the capability, international network and funding capacity secure purchase order financing for Chinese, USA and International companies, whether they are engaged in domestic or cross border trade.
There are three steps for purchase order financing:
1. Get a purchase order from your customer.
2. Find a reliable supplier of your products.
3. Place an order to that supplier.
We do not only focus on the balance sheet of the company. Each transaction and its economic and commercial viability is assessed on its own merits.Shield is able to react quickly to unique financing requests in trade. We offer the speed and flexibility to get deals done.
Final credit decisions are made based on four key criteria.
* Management Expertise
* Reliable Sourcing
* Valid Purchase Orders- we will provide financing based upon firm valid purchase orders issued by creditworthy companies.
* Verifiable Repayment
For more information on assisting you with Account Receivable or Purchase order Financing contact: jshoot@shield-intl.com
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