Financial Solutions

Factoring with Gulf Coast Business Credit is fast, simple and hassle-free.
Find out how we can be your solution below.

What is Accounts Receivable Factoring?

It’s no secret that cash flow is the lifeblood of every business. Successful businesses require consistent cash for ongoing operations and additional cash reserves to fund growth opportunities. Maintaining sufficient cash can be difficult for new businesses and businesses experiencing rapid growth. Gulf Coast Business Credit can provide immediate assistance by turning your accounts receivable into cash.

With accounts receivable factoring, otherwise known as invoice factoring, GCBC considers your customer’s ability to pay, not yours. The biggest attraction to factoring is not being held captive by slow-paying customers.

Accounts Receivable Factoring with GCBC lets you turn your invoices into cash that can immediately be used to meet payroll and other expenses.

What is Accounts Receivable Factoring?

Selling invoices to a third-party buyer (a Factor); invoice factoring is one way to fund your business.

Step 1

A copy of your invoice is given to Gulf Coast Business Credit.

STEP 2

Gulf Coast Business Credit pays you 80-90% of the invoice in cash.

STEP 3

Gulf Coast Business Credit acts as your accounts receivable department and services the invoice.

STEP 4

The Customer pays 100% of the invoice to Gulf Coast Business Credit.

STEP 5

Gulf Coast Business Credit pays you the 10-20% remaining less fees in cash.

How Does Accounts Receivable Factoring with GCBC Work?

Accounts Receivable Factoring with Gulf Coast Business Credit is fast, simple and hassle-free. Clients fill out a schedule of invoices they wish to sell when capital is needed. Upon receipt of the schedule, Gulf Coast Business Credit will fund 75-90% of the total amount on the same business day. Once the invoice is collected in Gulf Coast’s lock box, the reserve account (less fees) will be returned to the customer. Our clients enjoy the benefits of same day funding, as opposed to waiting up to 90 days for payment.

GCBC has representatives who serve businesses nationwide.

Accounts Receivable Factoring vs. Traditional Bank Line of Credit

Accounts Receivable Factoring focuses on the credit worthiness of your customers, not your company.
Unlike a typical bank loan, factoring clients are not subject to tightening credit availability due to credit cycles, economic volatility or market fluctuations.
Traditional bank loans have restrictive covenants on net worth, leverage, profitability, dividends and other restrictions, which inhibit sales growth.
Typical bank loans focus on the strength of the balance sheet, the profit and loss statement and cash flow of your company.
Factoring de-leverages your balance sheet.
Getting setup to factor with Gulf Coast Business Credit is quick, with no long approval process.

Industries We Service

Gulf Coast Business Credit offers services to all industries, but specializes in the industries below. GCBC has representatives who serve businesses nationwide.

Oil & Gas

Staff Factoring

Frieght & Transportation

Manufacturers

Distributors

Service Providers

Technology

Wholesalers

Business Attributes

Whether you have an established business or a start-up, there comes a time when you need more credit and purchasing power than is currently available. Ideal Gulf Coast Business Credit factoring clients consist of:

Companies with high growth
Highly leveraged companies
Companies with insufficient net worth
Start-up companies
Closely held and public companies
Under capitalized companies
Companies in turn-around
“Debtors on Possession” (Chapter 11 bankruptcies)
Businesses with high accounts receivable concentrations

And typically share the following traits:

Quality client base
Quality products and services

Benefits of Invoice Factoring

With extra cash flow, your company can:

Cover payroll and operating expenses
Take advantage of supplier discounts
Purchase additional inventory or equipment
Pay taxes
Increase sales and profits
Offer credit terms to customers

Benefits GCBC clients enjoy at no additional cost are:

Speeds up collections
Replaces your credit department
Assists your collection efforts
Posts your collections
Access to Daily Online Reporting
Allows companies to achieve full growth potential from new profitable sales
Provides cash availability to start-up companies with a limited operating history
Generates immediate cash to help companies achieve increased profits
Allows clients to take purchase discounts
Can be a substitute for giving up equity or bringing in partners, losing ownership or control
Client obtains full benefit of GCBC’s credit department at no cost, hence decreasing bad debts and increasing profitability
Allows companies with large concentrations to one customer to have credit availability
Takes the worry out of financing and allows you to focus on your business
There are no restrictive covenants on the balance sheet and income statement which would restrict the company from seeking new sales
You pay for only those invoices that are factored with no minimum requirement

Asset Based Lending

Gulf Coast Business Credit is proud to offer asset-based lending. This form of lending is a solution for businesses or companies with needs that lie outside of what traditional banks and finance options can offer. Asset-based lending is a secure loan process that is based on your assets. It gives you the ability to finance based on the assets you have in order to gain the working capital you need.

Many companies turn to GCBC for asset-based lending when they are in tough financial situations such as seasonal demands, quick growth, economic hardships, plant turnarounds, etc. Many traditional financing options can be restrictive and non customizable, but asset-based lending gives your company the flexibility and freedom it needs to grow.

At Gulf Coast Business Credit, our asset-based lending specialists will work with you personally to find the best financing solution for your company’s needs. We understand that all businesses are unique and have different needs, and we will work with those specific needs to create a custom solution just for you.

Gulf Coast Business Credit offers services to all industries, but specializes in:

Oilfield & Gas
Distributors
Service Providers
Staffing Providers
Wholesalers
Technology
Manufacturers
Transportation Companies

Gulf Coast Business Credit has representatives who serve businesses nationwide.

Customized Solutions

Gulf Coast Business Credit is here to build custom financial solutions that fit your business’ unique needs. Our experienced staff will work with you on a financial plan to ensure all of your specific monetary needs are met. The process to create a unique, custom plan that’s been tailored just for your company only takes 2-3 weeks.

Check out these success stories of GCBC creating custom financial solutions for businesses:

Gulf Coast Business Credit provided a customized financial solution for an electronics distributor that came in the form of a working capital facility for their inventory, in addition to a traditional working capital facility. They were able to receive cash based on the inventory they had in their warehouse at any given time, which provided an extra stream of cash flow to help them grow.
Another customized solution was tailored for a clothing manufacturer that produces a seasonal football product. GCBC was able to provide a purchase order finance line to get them through the off-season when invoices were not being generated.

Case Studies

Oil and Gas Case Study

Problem: Gulf Coast Business Credit was referred to an oilfield service company located in Houston, Texas that had a large concentration ($1.6MM) in Lyondell (pre-bankruptcy) receivables with a total facility size of $3.5MM. The oil company was transitioned into the bank’s special assets department a month after the announcement of the Lyondell bankruptcy. The oil company was on the verge of bankruptcy at this point as well, they could not cover payroll and the bank was not willing to provide additional availability.
Solution: GCBC worked with the oil company and the special assets division of the bank to pay down the line of credit by utilizing receivables other than Lyondell to immediately reduce the bank’s exposure. The bank termed out the Lyondell portion of the line and entered into an intercreditor agreement with GCBC where GCBC held back 4% of each funding to the oil company which was wired directly to the bank monthly in addition to the monthly term payment made by the company until the bank was paid off in full.
Amount: $1.6MM

Distributor Case Study

Problem: Gulf Coast Business Credit was approached by a banker in Dallas, TX with a distribution company that had a $13MM factoring facility request and an $8MM concentration with a single debtor. This was a profitable company who had been in business for more than 10 years. A competing asset-based lender refused to help them, and the distributor was now struggling to put a working capital facility in place before the holiday season was upon them. The company had a significant amount of purchase orders and had doubled their revenues year after year without fail.
Solution: GCBC brought together a team of banks with factoring divisions to participate in this factoring opportunity. GCBC holds $3MM of this factoring facility while the bank that referred the deal won the depository and ancillary services.
Amount: $3MM

Freight & Transportation Case Study

Problem: Due to slow payments from shippers, a multi-unit trucking company in Georgia that is family-owned and operated and has been in business for 20+ years with a fleet of more than 10 trucks handling general import and export freight nationwide turned to factoring as a financial solution.
Solution: Accounts receivable financing will allow the company to turn invoices immediately into cash in order to meet payroll and other expense deadlines. With the help of GCBC this company is now focused on expanding with additional drivers.
Amount: $350K

Manufacturer Case Study

Problem: Gulf Coast Business Credit was recently referred to a steel fabrication company located in Baton Rouge, LA in business for 20+ years, maintaining a successful relationship with their bank since inception. The bank did not want to lose this relationship; however, they could not increase the company’s existing line ($750K) due to the losses in 2010 in order to allow the steel company to take on new large contracts totaling $300K in new business.
Solution: GCBC worked with the bank to carve out specific debtors in order to provide additional availability and the bank subordinated their position on these debtors. The bank maintained this relationship.
Amount: $300K

Service Provider Case Study

Problem: A service company that provides virtual call centers with a unique business plan that utilizes call center agents who work from home came to Gulf Coast Business Credit for help with a new contract. This service company signed a contract with a telecommunications provider that requires them to hire, train and staff 250 home-based customer service representatives.
Solution: Since this immediate expenditure went beyond the financial scope of the service company’s traditional banking line of credit, they sought a factoring company to support them in this new contract. GCBC was able to partner with the service company’s bank to structure an arrangement where GCBC factored only the receivables of the new contract, providing a much needed instant cash flow enabling the service company to hire and train their new staff immediately.
Amount: Cash flow to hire, train and staff 250 home-based customer service representatives

Staffing Case Study

Problem: Gulf Coast Business Credit was approached by a banker in New York, NY with a staffing company that had a $2MM factoring facility request, in business less than two years with a large debtor concentration that only paid invoices on 60 day terms. This company was on track to double their revenues during the second year of business without much diversification in their client base. Due to significant growth and extended payment terms, ongoing financial commitments became a challenge.
Solution: GCBC was able to come in quickly and provide a factoring facility that allowed the company to continue to expand while meeting their financial obligations. Since the closing, this company has also begun to diversify their client base and should be in a position to begin looking for a traditional bank facility within the next six months to a year.
Amount: $2MM working capital facility

Wholesale Case Study

Problem: A rapidly growing wholesaler that provides various consumables to major travel centers nationwide was having a hard time getting financing due to a high debtor concentration.
Solution: Gulf Coast Business Credit was able to provide them with a $2MM working capital facility, which gave them access to the cash flow they needed to leverage the opportunity for growth into actual growth. In special instances, and by request only, Gulf Coast Business Credit can provide purchase order financing for unusually large orders.
Amount: $2MM working capital facility

Technology Case Study

Problem: After obtaining a new client, a Texas-based technology consulting and staffing company had to increase their staff to support this new business, and they were concerned about meeting payroll to support the growth. Since the company had less than two years of business and concentrations in their client base, they were unable to obtain traditional financing.
Solution: The banking partner referred the company to GCBC for accounts receivable financing as a solution. GCBC was able to provide $100K working capital facility to the technology company.
Amount: $100K working capital facility