Meeting a wide range of needs
Companies in a wide array of industries and in various business lifecycle stages use factoring for many reasons, including working capital, bridge financing, debt refinancing, early stage financing, growth and acquisition financing, financing of U.S. subsidiaries, leverage buyouts or turnaround or debtor-in-possession financing. Factoring from Prestige Capital offers a flexible financing solution for the following uses:
Working Capital :
A measure of both a company’s efficiency and its short-term financial health, working capital is the cash a business requires to fund day-to-day operations. At times, working capital constraints occur due to rapid growth, seasonality, delayed customer payments and other unexpected events. Factoring provides immediate access to cash for business owners.
Bridge Financing :
This type of financing is a short-term loan that is used until a company secures permanent financing or removes an existing obligation. It allows a business to meet current obligations by providing immediate cash flow from factoring its accounts receivable.
When a company enters or exits a growth stage, is experiencing financial or operational challenges, or has outgrown its current bank, it is likely time to secure replacement financing. Factoring is a very powerful financing tool and should be considered by business owners when going through periodic refinancing exercises.
Early Stage Financing :
Entrepreneurs often lack the operating history necessary to raise capital to finance a business. Factoring is often used by startups to provide the capital necessary to get a business off the ground.
Growth and Acquisition Financing :
Typically, as a company grows so does its need for financing. Companies need to have ready capital to take advantage of opportunities, whether organic growth or by acquisition. Factoring provides that peace of mind and reliable financing.
Financing U.S. Subsidiaries :
Foreign business, entities looking to enter the U.S. market may create a U.S. subsidiary to manage operations and hold title to U.S. assets. Prestige provides creative global solutions to U.S. subsidiaries to grow their business and improve liquidity resulting from the sale of accounts receivables.
Leverage Buyout :
With factoring, acquiring companies can turn the accounts receivable of a target company into immediate cash flow to acquire the company and provide for its ongoing capital needs.
Turnaround and Debtor-in-Possession (DIP) :
Timing is critical when a company is in distress or underperforming. Turnaround financing is used by under-performing businesses that are not achieving their full potential. DIP Financing is provided to companies who have filed for bankruptcy protection and reorganization under Chapter 11 of the U.S. Bankruptcy Code for post-petition needs. The principals at Prestige Capital have extensive experience working with companies operating while in bankruptcy.