New Hampshire Factoring Companies

Manufacturing

Technology Companies

Trucking Companies

Furniture Companies

Non-recourse Factoring: Invoice factoring without recourse means the factoring company assumes the risk of non-payment from your customers. In this arrangement, if a customer fails to pay, you are not responsible for covering the unpaid balance. Non-recourse factoring provides fast access to capital and immediate cash flow, but it typically comes with higher fees due to the increased risk for the factoring company.

Recourse Factoring: Recourse factoring requires the seller to assume responsibility if the factoring company cannot collect payment from a customer. In this scenario, if there are any issues with collecting on an account due to bad credit history or other factors beyond just payment problems (such as late fees), you are responsible for covering the unpaid balance. Recourse factoring generally offers lower fees compared to non-recourse factoring, but it places more risk on the seller.

Credit Assessments: Credit assessments are a crucial aspect of factoring services. Factoring companies generally conduct credit assessments on your clients to evaluate their creditworthiness and determine the likelihood of non-payment. This helps the factoring company decide if your invoice is eligible for factoring and at what rate. Typically, the more creditworthy your customers are, the higher your factoring advance.

Accounts Receivable Management: A number of factoring companies in New Hampshire take care of the administrative tasks related to managing your accounts receivable, such as billing, payment processing, reporting, and customer support. This can save you valuable time and help you maintain control over your cash flow.

Collection Services: Most factoring companies manage debt collections on your behalf, eliminating the need for you to pursue late payments from your customers. This can save you time, money, and stress, allowing you to concentrate on expanding your business.

Industry-Specific Perks: Factoring companies catering to the transportation industry, for example, often offer additional benefits such as fuel cards, load boards, roadside assistance, and tire discount programs. These services can help transportation businesses save money and efficiently manage their operations.

Asset-Based Lending: Unlike accounts receivable factoring, asset-based lending uses a company’s assets, such as inventory or equipment, as collateral for the loan. This type of lending can provide more flexibility and be tailored to your business’s specific requirements.

Equipment Leasing: If your business needs to acquire new equipment but doesn’t have the upfront capital, equipment leasing or financing could be a viable option. Factoring companies can help you lease or finance equipment, preserving your working capital for other expenses.

Commercial Credit Cards: Some factoring companies offer commercial credit cards that can help manage business expenses and cash flow. These cards often come with benefits, such as rewards, lower interest rates, and expense management tools.

Invoice Discounting: Invoice discounting, also known as accounts receivable financing, is similar to factoring but works more like a loan and allows businesses to maintain control over their invoices and collections. In this arrangement, a factoring company provides funds based on the value of the outstanding invoices, but your business remains responsible for collecting payments from its customers. This option offers more confidentiality than factoring, as customers may not be aware of the financing arrangement. However, you will need to repay the financier once your invoices have been paid.

Insurance Premium Financing: Insurance premium financing is a service provided by some factoring companies to help businesses spread the cost of their insurance premiums over a more extended period instead of paying the full amount upfront. This financing option can help improve cash flow and make it easier to budget for insurance expenses.