Factoring accelerates cashflow from outstanding account receivables to bridge the funding gap between an invoice and receipt of payment from your customer.
Non-Recourse or Traditional Factoring
Non-Recourse Factoring (also known as Traditional Factoring) involves outsourcing accounts receivable management, including credit protection and collection services. This solution helps businesses reduce administrative burdens and operational costs while shifting the payment risk to the factor. Once an invoice is approved, companies are protected from the risk of a customer’s financial inability to pay, ensuring stable and predictable cash flow.
Important Factors to Note:
Traditional Factoring is commonly used by businesses in consumer product industries such as apparel, electronics, textiles, furniture, and food and beverage to mitigate payment risk
The accounts receivable outsourcing services associated with Traditional Factoring can be utilized as a standalone solution or combined with advances from the factor, providing businesses with flexibility based on their cash flow needs
Situation
Client wanted additional customers to qualify for credit protection while increasing their credit facility ahead of the spring shipment season.
Specialized Financial Agreement
Republic approved over 90% of their customers while extending a seasonal overadvance to support their confirmed orders to several major retailers.
Results
Because of its partnership with Republic, the swimwear company doubled its revenue.
Individual circumstances may vary
Apparel Manufacturer
Industry
Apparel
Facility Size $2,500,000
Business Private label apparel manufacturer specializing in full-packaged women’s garments
Situation
Client entered a period of dynamic growth with a few large customers and wanted improved cashflow without concentration limits.
Specialized Financial Agreement
Republic approved most of its customers and provided funding support (without full credit protection) for many of their non-approved accounts.
Results
Factoring facility was promptly increased to $4,000,000 within the first 60 days as demand surpassed initial expectations.
Individual circumstances may vary
Recourse or General Factoring
Recourse Factoring (also known as General Factoring) provides advances against unpaid accounts receivable that are primarily secured by the credit worthiness of your customers. You (as the Seller) of the invoices maintains the ultimate payment risk if an invoice goes unpaid. Factoring accelerates your cashflow from your first ever invoice, through periods of rapid growth.
Important Factors to Note:
Our factoring facilities are designed for start-ups and high-growth businesses typically with annual sales between $1 million to $100 million.
Our clients’ industries are often temporary staffing, government contractors, oil field service, food and beverage, manufacturers, distributors, automotive suppliers and most industries except for construction.
Often considered one of the more flexible financing solutions for growing businesses as it prioritizes speed and convenience over burdensome reporting requirements.
Factoring is ideal for all businesses expecting more than $1,000,000 in annual sales
Situation
Manufacturer outgrew its small business loan and positioned itself to rapidly scale with customer demand.
Specialized Financial Agreement
Provided funding for extended term customers (up to 120 days of eligibility) and waived the personal guarantee requirement (due to the single-family ownership).
Results
The manufacturer is poised to be a market leader in their category of the growing natural foods market within the next 24 months.
Temporary Staffing Company
Industry
Temporary Staffing
Facility Size
$750,000
Business
Northeast IT consulting and project agency
Situation
The company urgently needed immediate payroll funding for that week while laying the groundwork for expansion with its existing customers.
Specialized Financial Agreement
Provided a 92% advance rate on accounts receivable
Results
The firm exceeded its revenue goals by more than 50% and the facility was increased to over $2,500,000 within 48 hours of the request!
Don’t Just Take Our Word For It
"The factoring Republic provides has always been critical to our success. The immediate access to capital allowed us to seize new opportunities and accelerate our growth trajectory. We wouldn't be where we are today without their support."
Greg W,
Swimsuit Manufacturer
"We immediately felt that Republic’s diverse, experienced team understood our business and have continued to always be supportive. They don’t just offer solutions; they follow through.”
Loretta K,
Government Contractor
"In an evolving market, Republic stands out with its flexible and innovative solutions. Their 'we say yes' attitude is refreshing, and they’re not afraid to be creative when needed. They've helped us navigate complex challenges with a level of agility and authentic care that's rare."
