For companies going through a bankruptcy reorganization, post-petition financing is a challenge. Traditional lending sources are not an option. Accounts receivable financing with Scale Funding is the answer.
Scale Funding provides factoring lines to post-petition companies in many industries. Factoring makes cash available via the purchasing of a company’s invoices. As they emerge from a bankruptcy filing, many companies use factoring because it doesn’t create debt.
Invoice factoring is a financing option many businesses use for post-petition cash flow. Factoring is the selling of accounts receivables (invoices) to a factoring company for an immediate cash advance. Instead of waiting for 30, 60 or even 90 days for customer payments, factoring gives these companies the instant cash they need to manage their business.
Here’s how accounts receivable factoring works. When Scale Funding purchases your invoices, we transfer a competitive advance on the invoice amount directly into your bank account within 24 hours, via direct deposit. The remaining amount is held in reserve. Once your customer makes payment on the invoice to Scale Funding, the remaining balance, minus a small fee, is paid to you.
When a company is going through a bankruptcy reorganization, business loans and business lines of credit are not an option for financing. Banks simply will not approve loans or lines for companies in bankruptcy. This is why factoring makes sense.
With the approval of the Bankruptcy Court, companies can take advantage of factoring through debtor-in-possession financing (DIP), giving them the opportunity to cash-flow their operations and return to profitability. For many companies in bankruptcy, DIP financing is the only viable option to improve cash flow.
Accounts receivable factoring relies on the credit and payment history of your customers. DIP factoring lines are based on your customer’s ability to pay. In addition, factoring does not create debt for your company. It simply speeds up access to the cash you’re due.
Recovering from a bankruptcy filing takes dedication, discipline, and cash. Scale Funding has helped companies recover from a bankruptcy filing with the cash they need, plus additional services which benefit clients.
Scale Funding customers work with a dedicated relationship manager to help manage their accounts receivable and other back-office support services. We provide integration with billing software, invoice handling, image archiving and payment posting. All customers have access to account reporting, 24 hours a day, seven days a week through our secure online system.
We aid our clients in managing risk by making sure the customers they work for are creditworthy. We look at payment history, financial records, credit reports, operating history and other factors to make an informed decision about adding prospective debtors.
When companies are late on making payments, our AR management Department contacts them in a timely and professional manner to make sure payment is made on the services provided. Our team is trained to anticipate problems before they occur and solve any issues that may arise.
These services and others allow company leaders to focus on recovery and creating a strong company. Factoring with Scale Funding is the right choice for companies in need of post-petition DIP financing.
At Scale Funding, we know the attention of company leaders should be focused on building their business. We understand that taking the focus away from the work at hand is counter-productive. We eliminate complications and offer a speedy setup process. With Scale Funding, getting set up for accounts receivable factoring is as easy as 1-2-3.
Step 1 – Get a Quote
The initial step in securing a factoring line is to speak with a Scale Funding representative. We’ll discuss your cash flow situation and needs, and we’ll offer a free, no-obligation consultation and quote for a factoring line. Our simple and straightforward underwriting guidelines allow most customers to receive written quotes in 30 minutes or less. All factoring quotes are customized for the specific needs of the client. We’ll work to make certain the factoring line meets your requirements and those of the Court.
Step 2 – Submit Invoices and Related Documents
Once a factoring line is agreed upon, we’ll schedule your first funding. We can accommodate most schedules and offer an expedited service for those in need of immediate cash. During the set-up process, we’ll walk you through the agreement and discuss your invoices and any related materials.
Step 3 – Get Cash for Your Invoices
When the set-up process is complete, we fund you via ACH direct deposit or a wire transfer directly into your bank account. From this point forward, each time we receive your invoices, we’ll process and fund you the same day the invoices are received.
Scale Funding offers companies the cash they need, when it’s needed. Since 1994, companies from a range of industries and a variety of services have turned to Scale Funding for factoring. Our industry knowledge and reputation for service have made us a leader in the factoring industry. Companies searching for post-bankruptcy DIP financing choose Scale Funding.
Telecom & Wireless Contractors –Scale Funding provides factoring for telecom and wireless companies doing work such as cell-tower construction, trenching, fiber optic and structured cabling, network engineering, decommissioning and removals, and more. These companies use the cash from factoring to complete their projects and take on more work, enabling more aggressive growth.
Heavy Construction Operators – No matter if it’s operating an excavating company, construction management, welding or performing utility locating work, the need for cash is the same. Scale Funding has experience factoring for clients who do heavy construction work.
Technology Companies –IT consultants, data management firms, network services companies and software developers use factoring to cash flow their business. At Scale Funding, we recognize the importance of cash flow to technology services companies.
Utility & Pipeline Companies – Pipeline contractors doing construction, inspection and rehabilitation use factoring as a source of cash. Utility contractors, and sewer and water-main construction companies have benefited from the cash flow factoring provides.
Oilfield Services – Scale Funding is a leader in factoring for oilfield service companies. Clients work in many segments of the exploration for and production of oil and natural gas. Oilfield services companies from the Eagle Ford Shale of Texas to the Tar Sands of Alberta use factoring as their reliable source of cash.
Trucking & Freight – Factoring for trucking fleets and freight haulers are a core part of Scale Funding. The knowledge and experience of our staff, along with the reputation we have earned for service, makes Scale Funding a trustworthy choice for trucking companies interested in factoring.
Renewable Energy – The renewable energy industry continues to grow and thrive. As the demand for clean energy and green energy increases, business and work opportunities for contractors grows as well. Accounts receivable financing is an excellent option for companies in need of immediate cash.
Government Contractors –Factoring with Scale Funding provides the cash needed by government contractors to meet their deadlines. We provide fast invoice payment for federal, state, provincial and local contractors that need steady cash flow to deliver their services to all branches of government.
Staffing Agencies –Scale Funding provides factoring lines to many staffing agencies. Clerical, administration, temporary and long-term placement, and medical staffing are some of the types of agencies who have successfully used factoring lines from Scale Funding.
Other Industries – Apparel companies, manufacturers, distributors, printers, advertising agencies, media companies, and many other businesses use factoring as their source of cash. Scale Funding can customize a factoring line to meet the needs of most any business.