WHAT IS FACTORING?

(a.k.a. Invoice or Accounts Receivable Funding)

Factoring is the time honored and increasingly utilized financial tool that speeds client cash flow and helps avoid the problems that slow-paying customers can create for fast-growing business. The factor provides quick and convenient funding to growing companies who need capital to expand their business or to simply function more efficiently.

Simply put, the Factor purchases credit-worthy accounts receivable at a discount and funds the client with immediate cash eliminating the need for a bank loan.

Unlike traditional bank lending that is dependent upon the value of the clients hard assets that can be liquidated in the event of a loan default; this innovative approach places no impediments to the growth of the client's enterprise and relies solely upon the business the client has generated.

Factoring is most often utilized to fill the financial gap between the time of the completion of a transaction and the time payment is received from the customer. Many times a business cannot afford to wait for payment after delivering their product or service, especially when products are sold on 30, 60, or 90 day terms.

While awaiting payment, the clients fixed expenses of operating a business on a day-to-day basis continue. Additionally, money is needed for materials, supplies, labor, and expenses to fill incoming orders. Most businesses do not have access to other funds while they wait to collect the money owed to them.  Factoring gives a business the needed cash in a few days rather than months.

Just about any business that generates invoices can factor, including businesses with no collateral, no earnings, and even questionable credit.

G&G Holdings is not a bank, and does not lend money. We merely purchase debt. We are in a position to help convert any sale made into an immediate "cash" sale.

Receivables financing is an age-old finance method used by very large corporations worldwide, with the service being provided by the largest banks in the world. Previously, only corporations with receivables of one million dollars or more per month could qualify for the service. Factors simply would not bother with smaller companies or multiple invoices. Since this service was not previously available to smaller companies, the clients customers will view this ability to secure receivables financing as a positive factor, not as a stability or cash flow problem.

Receivables financing is most often used to expand and take on larger projects, not just for cash flow or payroll. With the advent of this newly available service to other companies, the perception is one of growth.

Many companies already deal with Factors, and the general public is not always aware of it. Often, invoices directing payment to a P.O. Box or central processing center are actually payments to a Factor. You may be surprised to learn how many businesses have already been exposed to factoring or may even be factoring accounts!

Companies such as Mobil/Exxon, Shell Oil, Georgia-Pacific, IBM and Home Depot factor millions of dollars per year.

G&G Holdings empowers the client to generate daily cash flow as needed. The client chooses which invoices they want to sell for cash on a daily basis, and financing invoices regularly or only occasionally when they want a burst of liquidity.

By taking advantage of this powerful and flexible business tool, the client can obtain timely funds, accurate record keeping, effective management of the collection process and reach sales and profit goals attainable by no other means.

FACTORING through G&G can:

• Provide client with funds quickly and easily with no “Credit Ceiling”
• Help the client leverage off its customers credit
• Enable the client to meet increasing production and sales demands
• Enable the client to meet payroll demands and taxes
• Enable the client to take advantage of volume, cash and early     payment discounts 
• Help the client build credit and improve its credit rating by enabling it to pay bills on time
• Enable the client to concentrate on funding, marketing and developing the growth of its business
• Enable the client to attract larger customers with better credit terms
• Enable the client to offer credit terms to customers
• Enable the client to eliminate the necessity of offering early payment discounts to customers
• Enable the client to eliminate the need to incur any additional debt
• Enable the client to avoid making monthly or “Balloon” payments to repay bank loans
• Enable the client to meet seasonal demands