Aerospace Factoring to Alleivate Cash Flow Problems
Supplier Financing for the Aerospace Industry
- Aerospace Factoring to Alleivate Cash Flow Problems
- Supplier Financing for the Aerospace Industry
- Non-Recourse A/R Factoring for Aviation Contractors
- Aviation & Aerospace Company Invoice Factoring Summary
- What is aviation invoice factoring?
- How does an aviation factoring agreement work?
- Does my aviation company qualify for Invoice Factoring?
- Aviation and Aerospace Industries for factoring funding services:
- Advantages of Aviation Company Financing
- Factoring invoices takes away the burden of working capital gaps.
- What are typical aviation factoring fees?
- How to get started with an aviation factoring company?
- Criteria for funding an aviation factoring company:
- Bankers Factoring Aviation and Aerospace Company Funding Services
- Aviation Industry Bad Debt Protection
- Ready for the owner-employees of Bankers Factoring to help you grow your aerospace company with our invoice funding, including bad debt protection? Use our fast online factoring application or call the toll-free number 866-598-4295
Non-Recourse A/R Factoring for Aviation Contractors
Aviation & Aerospace Company Invoice Factoring Summary
Aviation company financing is essential as extended payment terms and slow-paying customers dominate the industry. Aircraft manufacturers, parts suppliers, and ground handling companies need more cash flow to keep up with strict regulations and service standards.
Aerospace invoice factoring helps fund aviation businesses with aerospace parts inventory, working capital payroll funding, leases, and material expenses. The factoring process is straightforward – sell your invoices to a factor and receive working capital.
What is aviation invoice factoring?
Aerospace and aviation company financing through selling open invoices is called invoice factoring. Aviation services range from ground handling, private charter, repair, and maintenance to customer support. Large customers require extended payment terms causing up to 90-day delays for payment. Factoring invoices helps offset the short-term cash flow gaps from extended payment terms.
Keep reading the full article, What is Invoice Factoring? How Does it Work?
How does an aviation factoring agreement work?
A company and the factor enter into an agreement where the factor buys the company accounts receivable (A/R) and provides cash flow funding in exchange. The factor is assigned your receivables and manages the collection process for you.
Keep reading the full article, What is Notice of Assignment in Factoring?
Does my aviation company qualify for Invoice Factoring?
Doing business at the airport requires cash flow financing to pay employees, cover leases, and revenue sharing agreements. The good news for small companies is that invoice factoring helps remove short-term cash flow gaps. You can qualify for factoring financing if your business has open invoices from a commercial or private airline provider or manufacturer.
Also read offer credit terms through invoice financing.
Your aerospace firm can rely on your customer’s creditworthiness to obtain financing for new material, staffing, and resources.
Aviation factoring company qualifications:
- Open invoices from a commercial company
- Creditworthy customers
- Gross margins above 20%
- Unencumbered receivables – no liens over business assets
Aviation and Aerospace Industries for factoring funding services:
- Aerospace Manufacturing
- Airplane Parts Supplier
- Defense Contracts
- Commercial Airlines
- Commercial Ground Handling
- Fueling Services
- Private Charters
- Customer Support / Call Center
- Above Wing Services
- Below Wing Services
- Aircraft Maintenance
- Regional Carriers
- Mainline Carrier Services
- Security Staffing
- Cleaning and Cabin Services
- Food and Beverage
- Airport Guest Services
Advantages of Aviation Company Financing
Financing your business with invoice factoring services provides two main benefits:
- Fast funding within 3 to 5 days of your application
- No balance sheet debt or rigorous qualification process
Leveraging unpaid invoices from large customers such as aircraft manufacturers, commercial airlines, and private jet companies can help pay your front-line staff more efficiently. It is common for small businesses to take on large contracts with service-level agreements which place strict demands on your company’s staffing levels and operational performance.
Please read what are invoice factoring services?
Due to the long sales cycle and payment terms, aircraft manufacturers and assemblers benefit from bypassing the receivable cycle. Margins are slim in the aerospace industry, causing cash flow crises, budget constraints, and financing issues.
Factoring invoices takes away the burden of working capital gaps.
- Faster payments
- Weekly payroll financing
- Ability to extend credit payment terms to customers with bad debt protection.
- Easy account set-up
- Back-office receivables support – we remove the burden of handling A/R internally.
- Accessible funding up to $3,000,000 in monthly invoices
- Flexible finance options for businesses all of sizes.
What are typical aviation factoring fees?
The cost of factoring includes two expenses – fees and factoring rate or discount rate. Your total invoice factoring costs start with any fees the factoring company charges. The discount rate is the cost of funding or acquiring the capital set as a percentage over a fixed period. For example, you might have a 1.5% factoring rate per 30 days and a .055% daily rate following.
Fees are charged by the factor depending on your agreement, terms, and conditions. For example, there might be wire transfer fees, administrative charges, or processing fees included in your contract.
Keep reading the full article, How Much Does Factoring Cost?
How to get started with an aviation factoring company?
The financing process is simple and only requires an online funding application to get started. Your application includes information about you, your business, your customers, and some financial data. Moreover, assessing your options carefully when finding a factor financing company is crucial.
Criteria for funding an aviation factoring company:
- Industry expertise in aviation and aerospace manufacturing, ground operations, and service
- A reputable firm with access to sufficient working capital
- Does the company provide bad debt protection through non-recourse factoring?
- Am I provided with a customized funding program for my business?
- How long does funding take?
- How much are initial cash advances?
Bankers Factoring Aviation and Aerospace Company Funding Services
Aviation businesses can improve cash flow by implementing a finance plan with factoring invoices. Bankers Factoring provides cash advances from 80 to 93% with funding on the same day as account set-up. Our team of finance experts works hard to fund aviation businesses within 3 to 5 days of the application.
Aviation Industry Bad Debt Protection
Bankers Factoring provides bad debt protection if your customer becomes bankrupt or insolvent. We create customized cash flow solutions to overcome the month’s wait for customer payments. Accelerate your cash flow by selling invoices and growing your business.