Help Improve Your Cash Flow with Amegy Factoring
With Amegy Factoring, you can access immediate short-term cash without taking on short- or long-term debt or without diluting equity that gives an ownership stake to an investor in exchange for cash. Additionally, you can quickly access cash to support your operations, make payroll, or purchase goods. The great news is, you don't have to worry about losing money by giving discounts to your valued customers that may require early payments.
You get up to an 80-90% advance against the face amount of your chosen business-to-business accounts receivable invoices. The day after your customer pays, the remaining amount is remitted to your Amegy Bank checking account.
- No Long-Term Contracts and No Equity Dilution
- Easy Transition Moving from Factoring to Another Amegy Bank Financing Solution
- No Financial Performance Covenants
- Competitive Rates and Next-Day Funding Available
- Valid with Domestic and/or Foreign Receivables
- Credit Assistance and Free D&B Reports for Your New Customer
Learn more about how the Amegy Bank Business Credit division has provided credit financing to various industries across the country.
Our new client has a strong and growing diversified debtor base that is centered in the oil & gas industry. Company factored, due to prior losses and leverage challenges, with a small bank competitor. The majority owner, through a related business, has an existing $1.0MM RLOC and a commercial lending relationship with Amegy Bank. In addition to providing more availability, ABBC also was more competitive on pricing than prior factor. Client is looking at M&A opportunities and is very focused on streamlining operations, increasing efficiencies, and aligning itself with Amegy for future relationship synergies and a path to a more traditional line of credit. The company utilizes additional Amegy Treasury Management services.
The Company had an existing $9.5MM syndicated facility with Amegy Bank and Wells Fargo. The reduction in upstream energy activity during the downturn significantly impacted the Company’s financial performance and the credit was downgraded to substandard.
Based on experienced management, strong debtors, straightforward invoice documentation, and a strong private equity sponsor who continues to support the business with capital injections, ABBC offered a $10MM factoring facility along with a $4MM inventory facility maintained by Amegy Bank. The new facility was used to pay off Wells Fargo and provide additional working capital.
To mitigate exposure, both the factoring facility and the inventory line were participated out with another bank. Amegy maintains the lead on the participations.
Interested in learning more about Factoring?
To find out if Factoring is the right fit for your business, contact us today by visiting our team page or completing the form below.