Brief History of Factoring & Receivables
Finance:


A form of factoring has been traced back over 4,000 years to the Mesopotamians and later used by the Romans and the Europeans in the Middle Ages. It arrived in America with the Pilgrims around 1620.
Modern invoice factoring and receivables finance was developed in the United States in the 19th century, where it became the most prevalent form of working capital financing by the beginning of the 20th century.


Factoring & Receivables Finance Facts:


Factoring and receivables finance has been growing globally in recent years and in 2012 over $2,000 billion of receivables were purchased globally.


Here in the United States over $120 billion of receivables were purchased in 2012. Factoring is used by multi-billion dollar corporations, along with many small to mid-sized businesses.


As receivables based finance uses your commercial receivables as collateral it expands as your business expands making it an excellent working capital resource for growing businesses.


Here are the top 10 benefits to factoring invoices:


1.   Obtain Cash Without Debt
2.   No Credit Limits
3.   No Long Term Contracts
4.   Use of Funds is Not Restricted
5.   Pick and Choose What Invoices to Factor
6.   Strong Financials not Required on Business
7.   Available to new and non-bankable businesses
8.   Most Factoring Companies will Underwrite the

      Customers' ability to pay
9.   Low Factoring Fees
10. Receive Cash Fast (usually within 24 hours on

      established accounts)


By not increasing debt and freeing up much needed cash, it’s easy to see why so many businesses are using factoring to pay bills, fund growth, increase sales, meet payroll, maintain a good credit rating, or take advantage of early payment discounts.


FLEXIBLE INVOICE FACTORING

Key Features:
 Discount fee only on invoices funded
 No contractual minimum volumes
 Fund daily or weekly, as funds are needed

Typical Facility Size:  

$50,000 to $5MM (funds advanced)


Typical Deal Size:

Start-ups ($1MM) up to $60MM in revenues


Typical companies:   
 High growth    Family Owned
 Turnaround    Workout
 DIP Funding  Startup

Industry Examples: 
 Oil & Gas Service            Temporary Staffing
 Manufacturing                   Transportation
 Security Guard Service      Distribution
 Telecommunications          Janitorial
 Government Contracting    Consulting
 Marine Transportation       Printing

Key Requirement:
 Businesses selling to businesses on credit terms of Net 60 or less

Typical Approval Process:
 24-Hour Response with Letter of Intent on submission of package
 48-Hour Response after returned LOI with deposit
 Funding within 48 Hours after approval with clear lien search



MILES CAPITAL ADVISORS

Contact:  Mr. Emory B. Miles, President, 

Miles Capital Advisors
Email : info@MilesCapitalAdvisors.com 

Phone : 305.848.LION (5466)

​Member, International Factoring Association


GETTING APPROVED


Here is a list of the most pertinent questions we ask to qualify clients:

1) What does the business do? Annual Revenues?
2) What is the business structure?  What are all of the products and services offered?  What is your competitive advantage?
3) Who owns the company?  What are the roles of each?  How much experience of each?
4) Why are they looking for financing?  What will it help them achieve? (ie. Meet payroll?  Pay suppliers on time?  Pay payroll taxes on time? Build inventory levels?)
5) Who are their customers?  Are there any concentrations? 
6) How do they bill their customers? Net 30? Net 60?  Is there any progress billing? (if so, we cannot work with it unless it is a small portion of the business) 7) Take me through a typical transaction.  Do you get a Purchase Order?  Do you work off of contracts?  What is all of the supporting documentation that goes along with an invoice?  What is the proof of delivery?  Do you get sign offs from your customer?
8) Do you have any liens or judgements on the company?
9) Are there any outstanding lines of credit or term loans?  What are they secured by?  (if by all business assets, we will need to take a look at the collateral to see if we can take the LOC out or have the bank subordinate their position).
10) What is the timing?
11) Who else is looking at this deal?

Industries we work with:

-Wholesale/Distribution, -Manufacturing,

-Temporary Staffing,

-Transportation,

-Service related businesses. 


Any business selling to another business on terms and billing for products delivered or work performed qualifies.


Industries we don’t work with at this time:

-Construction and Third Party -Medical (where they get paid through insurance companies, medicare, medicaid, etc.)

What we need in order to evaluate a deal:

1. Application – please request in our Contact Form and fill in all the blanks or enter N/A where necessary
2. Most recent detail & summary of Receivables Aging
3. Accounts Payable Aging
4. Customer List – customers will NOT be contacted
5. Current Financials (balance sheet, P&L statement)
6. A recent invoice with proof of delivery, proof of payment and purchase order/contract if available.



INVOICE FACTORING & RECEIVABLES FINANCING

FILL OUT OUR CONTACT FORM

REQUEST AN APPLICATION


INVOICE FACTORING, ACCOUNTS RECEIVABLE FINANCING AND ASSET BASED LOANS 

Financial Management is one of the most important things we can do, but it's also the most overlooked.

At MILES CAPITAL ADVISORS we'll help you accomplish your future financial goals every step of the way. From Domestic to Global Trade and Finance - Don't worry, we've got you.

MILES CAPITAL ADVISORS 

INVOICE FACTORING,  ACCOUNTS RECEIVABLE FINANCING AND ASSET BASED LOANS FOR U.S. AND MULTINATIONAL CORPORATIONS. 

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