Apparel Factoring

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3 Step Process

factoring steps

Is your company in the clothing or apparel industry and looking to grow your business and increase cash flow?

Factoring your apparel invoices through Allegiant Business Finance is an ideal way for your fashion business to create growth and rapidly increase cash flow.  In this challenging time in the fashion and apparel sector make sure your company is taking advantage of the high levels of industry growth, by pursuing a financing solution that will allow you to increase your working capital and facilitate consistent growth without incurring new debt.  As you grow your credit line grows with your business.

Apparel industry businesses often wait an extended period of time before their invoices are paid. This makes it difficult for businesses to maintain sufficient funds to keep them afloat. Waiting for customer payments can result in running out of cash to pay bills, suppliers, and/or payroll. To overcome this, Allegiant offers clothing and apparel factoring services as means of maintaining a steady inflow of cash to your business.

Allegiant has a long history of factoring Apparel companies including;

Apparel Clothing
Fashion Garment
Textiles Wholesale
and many more.

Client Testimonials

Chris Aring

I would highly recommend Allegiant’s factoring services to anyone. They have been very flexible and quick to respond to new customers and increases to customer lines of credit. From the factoring of the smallest invoice to large multi shipment projects I have always received the same quality service from the team at Allegiant.

How Factoring Works in the Fashion Industry

Factoring allows an apparel company to keep producing goods even when current invoices are not paid and the company is low on funds. Typically, apparel businesses wait several weeks or months to receive payment, yet must continuously produce goods to meet market demands. The purpose of factoring is to provide continuous cash flow before your customers pay, and avoid any disruption in the smooth day-to-day flow of business.

Factoring in the fashion industry works the same as in any other industry. It starts (once your account is created) with sending your invoices and paperwork to Allegiant to receive funding whenever you need it. Once we check your customer’s creditworthiness and verify the invoices, we process your request. Typically your cash advance is around 80% of the invoice’s face value. You are free to use the funds for any business purpose. After your customer pays Allegiant the full amount, we close the transaction by transferring the remaining amount to your account, after deducting a small factoring fee.

Benefits of Using Apparel Factoring

Here are a few benefits of factoring your apparel receivables:

  • You receive the advance payment on your current invoices in 24 hours, thereby generating immediate funds.
  • We check your customer’s creditworthiness, assuring us both you are selling to a company who dependably pays its bills.
  • If you are a startup, you can generate funds without relying on a bank who will most likely turn down your request for a loan.
  • With factoring you are selling an asset (your receivables), not borrowing money that you must pay back monthly for years. Your customer pays back Allegiant, not you.
  • Allegiant can provide billing services if you wish, freeing you from this time-consuming task.

It doesn’t matter if you are a start-up or a larger company; using Allegiant to fund your apparel receivables will bridge the gap between invoices and income. We provide a dedicated account executive to work with you on every transaction.

Watch your cash flow stabilize quickly with funds from Allegiant Business Finance. Enable your business to grow; and you won’t have to go into debt to do it!

Call us at 866.377.0800 to get the cash you need by CLOTHING FACTORING with Allegiant Business Finance.

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