Middlegate Factors provides a complete array of factoring and related services. Our focus is giving small to mid-size companies the financial control and flexibility they need to succeed in today’s business climate. To sustain profitable growth, you need a financial partner with the experience and resources to help you reach your goals.
We stand by our clients every step of the way.
Unlike banks, which operate under a predetermined set of standards, our specialists will tailor a factoring program according to each client’s needs and business profile. We’ll take care of the accounting, and collect on the invoices when they come due. We supply accounts receivable agings, cash receipts reports, and other payment information on your customers. Middlegate Factors is committed to providing the high level of service our clients demand.
With refactoring, Middlegate Factors offers small and mid-sized companies access to the power of large commercial finance companies — but without the high minimum fees. By combining the sales of our clients, Middlegate Factors enables companies without a large number of receivables the same opportunities as the industry giants. We value our relationships with the leaders of the future and are committed to supporting their growth and vision.
Factoring enables your company to focus on production and sales instead of collecting receivables. If you are ready to minimize concerns about the credit-worthiness of customers, time spent on collections, bad debts, and logjams in your cash flow, factoring may be the answer. If your plans require a reduction in operating expenses, increase in working capital, and improved management information, then factoring might be a strategic fit for you.
Factoring adds a level of financial flexibility so your company can pursue opportunities as they arise, independent of cash flow cycles. A lifeline for manufacturers, importers, jobbers, converters, service industries, and start-ups, factoring is used by many kinds of companies. Businesses that are seasonal, growing rapidly, undercapitalized, have a lengthy manufacturing cycle, or are strained by slow turnover of receivables, including high bad debt losses would greatly benefit from a factoring program.
Factoring can help any company protect against customer credit losses, enhance collection efforts, and improve borrowing power. Our financial strength and flexibility, combined with the highest level of service, enables Middlegate to respond to your needs and assist you in achieving your financial goals.
When a client enters a factoring relationship with Middlegate Factors, we establish pre-approved lines of credit for the client’s customers. Most orders submitted electronically for these customers will be answered immediately.
The client ships the approved orders to its customers and bills them, indicating on the invoices that payments are due to Middlegate Factors.
At invoice maturity, Middlegate Factors collects from the customer and credits the client’s account. Middlegate Factors fully manages the receivables including the lock box, cash application and collection of past due accounts. Customer deductions or disputes over delivery terms or product are immediately reported to the client. Middlegate Factors maintains the accounts receivable ledgers and prepares timely financial reports to the client.
In the event a customer defaults and is deemed financially unable to pay its debts, Middlegate Factors pays the client 100% of the value of the approved invoice.
As needed, Middlegate Factors will provide clients with cash advances prior to the maturity date of the invoices. This allows the client to be paid upon shipment while actually offering credit terms to its customers. Typical advance rates are up to ((90%)) of the value of the invoice. These advances are subsequently repaid by collection proceeds from their customers.
8 West 40 Street
New York, New York 10018
PHONE: (212) 382-9500
FAX: (212) 391-7312
TOLL-FREE: 888-643-3534
