Merchant purchases your accounts receivable. After a credit check, we guarantee payment of a shipment or service performed on a non-recourse basis and collect proceeds for you. Merchant is unusual in that we service clients that may not be attractive to larger factoring companies. Additionally, our arrangements with a major financial institution allows us to combine sales of one client with those of other clients and offer quick, objective credit decisions on clients' customers orders.
The following factoring arrangements are available:
Discount Factoring -- We advance percentage of the shipment, up to 85% of the invoice value, to the client. In addition to the credit guarantee fee, interest is charged on the amount advanced. The balance of the receivable, is paid on collection less any deductions and our charges.
Collection Factoring -- Provides the credit guarantee, and payment is made to you when your customer pays us. If your customer does not pay because of financial inability, Merchant pays you the entire face amount. A fee is charged for the credit guarantee and collection.
Import financing -- Merchant will open letters of credit to finance imported goods to be resold to credit worthy customers, subject to an agreed deposit. Advances for duty and freight can also be made.
Purchase Guarantee -- In some cases, Merchant will issue purchase guarantees for raw materials or finished products. In this way, you can receive credit terms from your suppliers, which extends your current limits while reserving your right to assert a claim if the merchandise is not received as ordered.
Partial Factoring -- We offer credit protection services on orders marked “credit limit full” by your current factor. This will enable you to make the sale, which ordinarily would be lost.
For all types of factoring arrangements entered into, Merchant Factor's services include the ledgering and the responsibility for the collection of the unpaid invoices when they come due.
We will supply:
- Accounts receivable agings
- Cash receipts reports
- Other computer information on your customers
Merchant offers client’s full on-line access through our state-of-the art Internet based system. This gives you the ability to view all your account information via the Internet. Our clients can enter orders for credit approval, receive credit decisions, see collections as they come in and monitor their accounts receivable at all times.