Purchase Order Financing, Factoring, and More
The difference between accounts receivable factoring and accounts receivable financing is that factoring involves the outright purchase of a client’s receivable and performing complete accounts receivable management. This is contrasted to accounts receivable financing which is a loan against receivables. Under the latter arrangement, the client company is ultimately responsible for administering, collecting accounts receivable and paying back the loan directly.
Accounts Receivable Factoring
Accounts receivable factoring involves a manufacturer or a service company selling its accounts receivable to Northwest Capital for cash.
- Company receives immediate cash to put back into the business
- Reduces administrative costs associated with collecting accounts receivable
- Offers a revolving source of working capital to our clients
Northwest Capital purchases invoices in most industries, including but not limited to, manufacturing, distribution, transportation, temporary staffing or other companies with billable service hours. We also specialize in purchasing federal, state, and local government receivables. After receipt of our completed Client Application, the initial purchase of invoices usually takes two to three business days. Subsequent transactions are usually funded within 24 hours.Freight Factoring Staff Factoring Automotive Factoring
Purchase Order Financing
Rapid growth, seasonal orders, or lack of equity are some of the biggest challenges facing businesses today. At times it’s not about finding orders but finding the cash to fill sold orders. Purchase orders can be a source of working capital and provide a cash flow solution to a company that is struggling to fill sold orders.
Northwest Capital provides needed cash flow by utilizing our client’s purchase orders as collateral. This type of financing allows business owners an opportunity to avail themselves of virtually unlimited capital for purposes of transacting business without parting with equity ownership or control.
We also have a special program available to assist qualified industrious entrepreneurs in getting started in the government supply contracting business.
Business Consulting and Turnaround Management
With banks and other lenders tightening their standards for all sorts of loans, Northwest Capital offers Business Consulting and Turnaround Management services to those in need of assistance with issues involving cash flow, taxes and bank workouts. Northwest Capital can provide common sense strategies that a company can implement to improve the odds of a better outcome with its cash flow.