When structuring asset-based funding solutions, factoring accounts receivable provides working capital without incurring debt. Ideally, receivables are spread over a number of accounts, but in business, as in life, not all is ideal.

We understand there are times in a company’s business cycle when there is one major customer. Maybe the company is a start-up, has a major seasonal account or is experiencing acute growth — having finally landed that huge customer!

On a case-by-case basis, Capital Solutions can structure funding where there is a 100 percent concentration — the receivables come from a single source. In a situation like this, we look for quality commercial accounts receivable from a company that has the ability to pay, and a proven inclination to pay. The team at Capital Solutions has decades of experience evaluating companies’ records and is able to promptly complete the due diligence required for funding.

Once the single-source accounts receivable is approved, then the deal can go forward per usual. Typically, eighty percent of the accounts receivable will be released when the deal is signed, with the remainder (minus the factor’s fee) released when the receivables are paid in full.

If you, or a company you know, are looking for an accounts receivable facility and only have one customer, please get in touch.

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