Why Companies Factor Their Receivables

There are practical reasons that many successful companies factor their receivables. Franklin's factoring arrangements are inherently more stable than lending arrangements. Franklin looks not only at the financial condition of your company, but at the creditworthiness of your customer as well in accessing your financial condition. As a result, Franklin is able to stand by its clients in difficult times. Many people find this dependability on the part of Franklin as indispensible to their peace of mind and ability to get on with running their business.

Clients choose Franklin because they wish to minimize their exposure to effects of any customer's bankruptcy. Dealing with Franklin within the parameters of the established credit lines offers full protection against the risk of bad debts. In other words, if your customer does not pay you as a result of its financial inability to do so, Franklin will bear 100% of the bad debt.

Successful clients appreciate the very substantial cost savings in not having to establish their own credit, collection and accounts receivable departments. They also prize the fact that they know that credit, collection and accounts receivable are being professionaly handled to the satisfaction of their customers.

Franklin's factoring clients value and are able to use the immediate funds provided by factoring with Franklin to:

• Take advantage of discounts offered by suppliers for prompt payment
• Take advantage of special buying opportunities to purchase more advantageously
• Handle their seasonal inventory needs
• Fund growth expansions and new acquisitions
• Finance leveraged buy-outs

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