First Business Bank announces that its accounts receivable financing team recently funded a $1 million factoring facility to a software development company.
First Business Bank’s new client specializes in developing software solutions that enhance the automation and efficiency of its customers.
“The dynamics of this sector can be tricky with respect to factoring,” said Bill Elliott, president – accounts receivable financing at First Business Specialty Finance, LLC, a subsidiary of First Business Bank. “Contingencies, such as milestone billings and subscription billings, can threaten the ultimate collectability of A/R. We developed a level of comfort with this transaction, and others like it, by analyzing the entire company’s overall risk of potential default and then weighing that risk against the collectability of the A/R.”
The accounts receivable financing team provides funding in amounts of $100,000 to $18,000,000 to companies seeking to improve cash flow and take advantage of every business opportunity.