Accounts receivable funding, also known as factoring, continued an upward trend in 2005 with volume exceeding $112 billion. This represented a 9.3% increase over the prior year, which is the strongest year to year growth rate since 2000. In fact, only 2001 was the only year in the past 20 that factoring volume did not rise. A/R funding continues to be an accepted part of financing, but according to the Read the rest of this entry »
Factoring may not be the world’s oldest profession, but not far from it. This financial practice can be traced back to the Roman Empire. Factoring was the dominant form of finance in the American colonies before the Revolution (mainly textile firms). Over the past few decades, consolidation has created two distinct types of funding sources (called factors): large, institutional-owned factors and several small, Read the rest of this entry »
Can you imagine the reaction the first time a lender said, “Hey, let’s lend large sums of money to a bankrupt company!”? As it turns out, lending to a debtor in possession can be a smart move. This article explains, in general terms, the hows and whys of DIP lending.
It may seem counterintuitive that banks and other institutions would compete fiercely to Read the rest of this entry »