A factoring relationship with Milberg is good for the bottom line, as receivables turn faster and cash is applied daily. Bookkeeping is always current and accurate, and approved credits relieve the financial and emotional burden of questionable receivables. What’s more, clients are often able to sell to customers that they might not consider selling to on their own.
In a typical factoring relationship, the client outsources the management of their accounts receivables and protects against credit losses. As a factor, Milberg acts as your credit, collections and accounts receivable departments by conducting credit analyses, setting limits on credit exposure, collecting accounts receivable and recording accounts receivable transactions. By "approving" a particular account receivable, Milberg agrees to absorb potential credit losses on that account.
Four Key Elements of a Factoring Relationship
In the event that a customer whose credit has been approved is unable to pay its bills, Milberg is responsible for payment to the client.
CollectionsMilberg follows up on late or skipped payments and provides clients with rapid notification of claims and allowances. Payments of accounts receivables are made directly to Milberg.
Milberg tracks all invoices on our system, recording sales, cash payments and credits.
For factoring arrangements, Milberg charges a commission based on an agreed-to percentage of sales volume. In the case of advance arrangements, interest is charged on the daily balance of the advances outstanding.