Alternative lending options like crowdfunding and P2P platforms are emerging as innovative new ways for businesses to access working capital, but some forms of alternative financing have been around much longer than some may think.
Factoring, for example, is a way for businesses to receive accounts receivables financing while manufacturers and suppliers wait to get paid from their buyers. AmeriFactors Financial Group is a veteran in this industry, and this week the company is celebrating its 25th year in business.
Along with that milestone, AmeriFactors announced Thursday (July 9) that it has surpassed another one: the financing of more than $5 billion in accounts receivable loans as of 2015.
The firm’s chief executive officer and founder, Kevin R. Gowen, Sr., said in a statement that AmeriFactors’ success stems from its ability to maintain close ties with its corporate clients. “Our 25th anniversary is special because of the clients who have been with us since the beginning,” he said.
While its main product is AR financing, the company also offers business cash advances, asset-based financing and more. The company can often provide business borrowers with the working capital they need within a day.
To celebrate its quarter-century birthday, AmeriFactors unveiled a revamped website and new logo, reports said.
Factoring saw a bit of an upswing in the years following the recession, reports earlier this year found. RSR Research analyst Paula Rosenblum expanded on the trend, noting that “the value of factoring receivables is that the seller gets its money faster, and the retailer has breathing time.” Experts say the simplicity of AR factoring makes it often more attractive than other financing options.