A Valuable Alternative to Invoice Factoring and Invoice Discounting

At Magnolia Financial, we provide flexible solutions to help support the growth of your business. Our cash flow program offers a number of benefits over traditional accounts receivable funding options such as invoice factoring or invoice discounting.

Long-term Flexibility for Your Business

With traditional invoice factoring or discounting, the factoring company is simply looking to buy your invoices on a case-by-case basis. The Magnolia Financial program is an adaptable, relationship-oriented solution that can help your business meet long-term goals.

Enhanced Experience for Your Customers

Most invoice factoring or discounting companies require that checks be made payable to and mailed to the factoring company. With Magnolia Financial, checks are still made payable to your business and mailed to a lockbox. For clients, this is simply a new remittance address.

Increased Cash Flow Funding Opportunities

Our cash flow program can include inventory in the borrowing base as well as your accounts receivable. Invoice factoring and discounting companies typically don't offer this additional funding source. Another advantage of our program is that all new invoices are typically eligible. Most factoring companies only accept accounts that have been pre-approved.

Additional Program Benefits

Magnolia Financial allows your company to borrow against your accounts receivable so you can have access to the cash the day you invoice (rather than waiting 30 days, 45 days, or longer for your customers to pay). This money can be used to:

• Support the growth of your business
• Bridge the gap between payables you owe suppliers and receivables owed to you by your customers
• Reinvest in inventory or equipment
• Take advantage of “prompt pay” discounts offered by your suppliers, or even negotiate a higher discount
• Pay-off or reduce existing debt
• Enjoy peace of mind knowing cash is available to meet your obligations
  

Additionally, because Magnolia Financial helps manage your back office, your company can focus on generating sales and finding new customers. This provides a number of management and efficiency benefits:

• Statement and remittance processing
• Real time customer credit monitoring and management via our online reports
• Full service collection management
• Customer credit evaluation
• Deteriorating customer credit notification and other red flags
  

To learn more about how our cash flow program can help you make the most of your accounts receivable, or to learn more about the benefits over traditional invoice factoring or discounting, please contact us today.