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Factoring
is a complete financial package that includes: §
Investigating
and assuming 100% of the credit risk on all of your approved customers. §
Hana has access to over 300,000 customer credit files that
enables us to determine which of your customers have the ability to pay for
your merchandise. §
Managing your
factored receivables, including bookkeeping, EDI invoicing, payment
processing and collections. §
Providing you
with weekly and monthly management reports. §
Giving you
immediate cash upon shipments made to your customers. Factoring
offers companies of all sizes, including start-ups, the following benefits: §
Reduce credit
and collection expenses §
Increase sales §
More
consistent and stronger cash flow §
Eliminate bad
debts losses §
Flexible and
continuous financing §
Improve
productivity §
Improve
management information What types of companies can benefit
from factoring? §
Rapidly
growing §
Start-ups or
spin-offs §
Undercapitalized §
Seasonal §
Experiencing
slow receivable turnover §
Hurt by high
bad debt losses §
Burdened with
a large customer concentration What does it cost? There are two costs involved in factoring: §
Factoring
commission §
Interest
charged on advances against receivables, if applicable The Factoring
commission is quoted as a percentage of factored volume and is based on these
variables: §
Factored sales
volume §
Average
invoice size §
Term of sale
to your customers §
Number and
type of customers The
Interest charge is competitive and comparable to any short-term revolving
credit interest charge. Interest is
charged monthly at a rate tied to major interest rate indices based on your
actual daily loan balance during that month. Who choose Hana? Hundred of companies use Hana because it has: §
Access to over
300,000 customer credit files. §
Experienced
credit, collection and client service personnel. §
Ability to
provide you with on-line access to your account information via the Internet. §
Ability to offer
other financial services: o
Purchase order
/ Trade financing o
Letter of
credit facility o
Factor
guaranty o
Equipment
leasing §
Sufficient
capital to meet your funding needs. How does factoring work? This can be best illustrated in the following five
steps: Step 1. When
a company enters into a factoring relationship and becomes a client, Hana
customizes an order submission procedure for credit approval via fax, EDI or
the Internet on-line. Most orders
submitted for these customers will be answered in the same day. Step 2. The
client ships the approved orders to its customers and bills them, indicating
on the invoices that payments are due to Hana. Step 3. At
invoice maturity, Hana
Collects from the customer and credits the client’s account. Hana fully manages the approved accounts receivable
including the lockbox where customer check are sent, cash application, and
collection of past dues. Customer
deductions or disputes over delivery terms or product are reported weekly to
the client. We maintain the accounts
receivable ledger and provide this information either by paper reports or
electronically via the Internet. Step 4. In
the event that a credit approved customer is deemed financially unable to pay
its debts, Hana
pays the client 100% of the value of the approved invoice. Step 5. As
needed, Hana
provides clients with cash advances prior to the collection of the
invoices. These advances are
subsequently repaid by the collection proceeds from your customers’
payments. Hana Finnacial is a
factoring company with a well established presence, and reputation in the
market place. Hana is headquartered in We
welcome the opportunity to discuss our services in greater detail with you. |
For more information, please E-mail
to factor@hanafinancial.com
|
Last updated Copyright © Hana Financial Inc. All rights reserved. |
