Factoring, or accounts receivable financing, provides companies with advances and credit guarantees through the sale of their receivables. CBC has worked with companies big and small, from start-ups to public companies, to provide liquidity and to help manage their accounts receivable bookkeeping and collection process on a with, or without, notice basis to their customers. CBC offers several commercial services programs that can be customized to meet your needs including:
Factoring is essentially a revolving line of credit secured by accounts receivables that provides the flexibility to make real-time customer credit decisions that ultimately help a company operate and grow its business, increase sales, improve and accelerate cash flow, eliminate bad debt and reduce operating expenses.
With our full service factoring program, CBC purchases your invoices as they arise in the normal course of business. In addition, CBC administers and collects receivables from your customers. CBC provides regular and detailed documentation outlining:
• Receipt of your invoices
• Customer payments
• Other reports relating to sales ledger activity
CBC offers both non-recourse and recourse factoring:
In non-recourse factoring, we assume the non-payment risk (credit protection). Recourse factoring is also available, where CBC will provide factoring without credit protection.
Advance factoring provides your business with immediate cash by purchasing your accounts receivables.
CBC’s Accounts Receivable Management program handles your entire accounts receivable process for maximum efficiency and transparency. Our program covers the complete accounting and administration process, from credit protection and collection services to cash application, bookkeeping and reporting. Our professional accounts receivable managers give you the outsourcing support that keeps overhead low, sales high and margins up. Our online systems will keep you abreast at all times.
CBC allows you to outsource your credit services to enable you to concentrate on running your business effectively, with the peace of mind knowing that your customers are credit-worthy and pose no risk.
Through our Credit and Collection service, CBC:
• Screens your customers for credit worthiness
• Assumes full credit risk on approved sales
• Performs bookkeeping and collection work
With decades of experience and entrepreneurial spirit, CBC goes beyond most factors and often is able to guarantee your customers’ financial ability to pay when others will not. If CBC can provide more credit than your current factor, we will buy the receivables directly from you to provide you with the terms you need to grow.
CBC offers non-notification factoring, which provides you with privacy and confidentiality. Through non-notification factoring, you will not be required to tell your customers (the debtor) that their invoices have been purchased.
A Letter of Credit can be the safest and fastest method toward obtaining goods. Today many exporters require Letters of Credit prior to agreeing to a transaction. CBC will work with its bank partners to issue Letters of Credit on behalf of the importer (buyer) that guarantee payment to the exporter (seller) upon the satisfaction of documentary requirements of the Letter of Credit.