Why use IER’s factoring solutions?
Small and mid-sized equipment manufacturer’s need access to quick and easy financial solutions. However, many find it difficult to meet their need when they need to obtain cash in a short time.
To counter this problem, company’s often opt for traditional lending sources, but this option is not ideal due to the long waiting times on decisions and strict requirements. To address this need for quick short-term cash solutions IER has developed two types of factoring solutions: P.O. financing/factoring and Invoice financing/factoring.
What is factoring?
Factoring provides manufacturer’s short-term working capital in exchange for selling or assigning the receivables / invoices to IER. The company then advances to the manufacturer a set percentage of the invoice’s value. The percentage advanced against such a contract can be quite high. However, all cases are subject to the risk of the contract and transaction and assessed one by one. The final stage for repayment is for the invoice to be paid to IER and the remaining set percentage paid to the manufacturer minus any applicable fees.
This process ensures the manufacturer has fast, short-term cash access and is available to all qualifying manufacturers that invoice businesses (B2B), utilities agencies, or government agencies (B2G).
How does invoice factoring actually work in practice when working with IER?
Our factoring options ensure you have a flexible financial amount available immediately with just a few simple steps:
- First, invoice your customer.
- Second, you sell/assign the invoice (factor the invoice).
- Third, you will be paid a set percentage of the full value of the invoice (loan).
- Fourth, your client pays the remaining value of the invoice on the due date.
- Fifth, you will be forwarded the remaining balance, minus the fees for the factoring process (repayment).
Using this process with IER will provide you with a tailored factoring solution that’s perfect for you as an OEM.
What are the benefits of a factoring solution for an OEM?
- We provide cash immediately on placement of invoice from your customers rather than waiting for the customer to pay later against payment terms which may take up to 120 days.
- Working with IER means less paperwork to file and manage.
- Secure. Factoring depends on your customers credit worthiness, ensuring you a secure factoring line. Thus, you’ll have more peace of mind knowing there’s no credit or added debt.
- Flexible. IER’s capacity for business is due to its focus on flexibility with the goal of providing the best financial solutions for your company’s needs.
- Inclusive. You can get more help from IER in organizing and managing your receivables and collections accounts.
Want to find out more about factoring with IER?
Contact us now and discuss how we can help you in providing financial solutions to your customers.