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Factoring

Accounts receivable factoring is a time-honored and increasingly valuable financial tool to accelerate cash flow. With factoring, credit-worthy accounts receivables are purchased at a small discount, converting outstanding invoices into immediate cash flow. Accounts receivable factoring allows our clients to outsource all or a portion of their credit and collection functions, often saving money and freeing more time for the client to focus on core business opportunities.

The Funding Process

Typically, 75% to 95% of the face amount of the accounts receivable is advanced. Gideon Financial then collects the accounts from the client's customers (the account debtors) and, upon collection, remits to the client the remaining 20% to 5% of the accounts, less a fee.

Gideon Financial can also provide various accounts receivable management, collection and credit services for our clients.

The Benefits Of Factoring

• Stimulates immediate cash flow
• Provides up to 95% funding for other growth activities or cash needs
• Offers immediate and dependable access to unlimited working capital
• Quickly strengthens a company's financial statements and credit rating
• Gives a company the ability to offer better credit terms to its clients
• Can enable a company to meet payroll and submit taxes on time
• Benefits existing businesses as well as startups and companies with credit issues
• No new business debt is created

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