Credit Protection and A/R Management
Milberg Factors is often called upon by banks to factor their clients' receivables in order to help the banks achieve greater control over the receivables collateral they lend against. By factoring receivables, Milberg Factors provides an extra layer of protection to a bank. In addition, the bank's client is able to outsource the servicing of those receivables.
Milberg has a seasoned management team in place to oversee all aspects of handling receivables, with an experienced credit department, A/R staff and operations team, all ready to deliver the high quality service our clients have come to expect.
Milberg credit analysts review and analyze the credit strength of the client’s customers, establish customer credit lines and grant customer credit. When an approved account goes bankrupt or is deemed uncollectible, Milberg absorbs the credit loss and reimburses the client. We take on the risk of an account debtor’s financial inability to pay, reducing or eliminating bad debt expenses.
Third-Party Accounts Receivable Management:
By factoring a client’s receivables, in addition to taking over the credit function, Milberg also provides all of the back-office support needed to service receivables, including collections, cash application, and deduction and dispute identification. The client has online access to its account at all times, including information on open items, paid items, disputes, and chargebacks. The bank can be provided this information as well.
When we receive payments on A/R, we forward the cash collected to the lender to apply to the client's loan or remit cash directly to the client, as directed by the lender.