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Factoring / Purchase order financing
What type of product is it?
This product is an alternative to a line of credit. Essentially, it involves selling or insuring a portion of your accounts receivable to reduce the payment cycle. In other words, it gives you the opportunity to quickly turn your accounts receivable into cash to avoid a shortage of funds. This type of financing is ideal for fast-growing companies in need of additional liquidity.
What are the special features of this financial product?
- To take advantage of this type of assistance, the borrower must sell his accounts receivable to a lender, who will in turn give him a certain percentage of their value.
- This type of financing is profitable because it frees up substantial funds quickly.
- It is not mandatory to notify your customers in this type of transaction. They may or may not be informed (silent or not) that their accounts payable have been sold.
What are the advantages of factoring / purchase order financing?
- One of the significant advantages of this product is that it provides rapid access to additional liquidity.
In addition to answering your questions, our SADC experts can help you analyze your situation. What's more, an analysis of your long-term needs and the determination of an appropriate financial strategy for your business could be developed at the same time.
See the list of different needs on the right. This financial product specifically meets the following needs:
Don't hesitate to apply to SADC for financing. We'll help you think through your project and bring it to fruition.
YOU WISH...
- Acquiring, merging or taking over a company
- Improve your working capital / Growth
- Starting a business
- Developing a residential / commercial project
- Acquiring equipment
- Export your products or services
- Financing your tax credits
- Buying commercial/industrial property
- Turn around the financial situation
- Take equity out of your business
- Robotize / Automate / Improve IT
- Financing a startup
- Improve your company's environmental performance
- Carrying out a group project
- Strategic planning for your company's development