BusinessCash is funding during the COVID-19 crisis.
  • Trade Financing from Chinese, Mexican, Indian & Vietnamese Manufacturing Companies, and others.
  • Receive Payment Fast After Billing Your Customers
  • No Reason to Wait 30-60-90 days to Receive Payment
  • Non-Recourse Funding Means Lower Risks for You
  • Competitive Rates as low as 0.79% for 30 days
  • Up to 92% Advanced as fast as the same day
  • Approval is based on your larger customers credit!
  • We Work With the Entire Supply Chain

Companies in the textile, apparel, and related industries normally require cash infusions in order to meet their working capital needs as they await payment from their customers. In recent years, invoice payments by customers have become slower compared in the past, putting added pressure on textile and apparel firms that must meet the costs of payroll, other operating expenses and inventory on a regular basis to successfully maintain their operations.

For many years, textile industry firms have turned to factors to help meet current working needs. Indeed, an early provider of factoring in the U.S. was Walter Heller, which provided this financial product, particularly to the textile industry.

With factoring, the financing firm purchases your invoices and advances you a high percentage of the invoice face value; for example, 75% to 92%. You will receive the remaining balance once your customer has paid minus low-cost fees.

In traditional factoring, the factor provides the funding as well as some assistance in collections. If a customer does not eventually pay their invoice, then the textile firm is on the hook for that amount.

Factoring was tailor-made for the textile and apparel industry

In the early 1900s factoring was used to fund US textile companies to purchase raw materials when bank loans were not available. In the last 100 years, factoring has evolved into a highly mature, sophisticated method of funding for the textile industry. Non-bankable companies with IRS issues, start-ups, client concentration, and bad credit can qualify for financing. Non-recourse options provide credit protection against bankruptcy. Textile companies get cash in as little as 24 hours to continue to grow their business.

The global fashion apparel industry alone represents nearly 2% of the world’s GDP and is over one trillion dollars. This means big business and non-recourse accounts receivable factoring and purchase order funding give your company the tools to improve cash flow and keep your company profitable and running smoothly.

Non-Recourse Factoring

Non-recourse factoring provides a type of credit insurance against non-collection from customers. In this type of factoring, the financing firm provides the funding and accounts receivable management. This is along with a credit insurance component. That is, the factor assumes the credit risk of a customer’s unwillingness or inability to pay their outstanding accounts receivable.

However, not all factoring firms can provide a credit insurance component. To be able to provide credit insurance, the factor must qualify with one of the large insurers that partner with the factor by having a strong balance sheet and a good credit culture to meet the insurer’s strict guidelines. For this reason, less than 20% of factoring firms provide non-recourse factoring with credit insurance.

With non-recourse factoring, in effect, we become your de facto credit department. Each of your customers will have a pre-determined credit limit, ranging from $20,000 to $2,000,000. The pre-determined credit limit will depend on their size and credit standing.

Fast funding for Textile Industries! Call (888) 400-5930 or use the fast, safe & secure online funding application.

No votes yet.
Please wait...

Back to Top