Hawaii Receivables Management (HRM) - Hawaii Factoring Specialists

Cashflow solutions for Hawaii businesses

Testimonial

Simply said, Hawaii Receivables Management does a great job in taking care of our receivables.

They are a true team and always look out for our business interests by going the extra mile. They have been able to work out complex payable issues with a major department store chain that required "unique" billing options. Whether dealing with EDI, or an international main office, Hawaii Receivables Management gets the job done, fast and professionally.

Quite frankly, in the garment industry, without HRM working together with us, we would not be able to have had our growth, and more importantly continued growth in a very competitive market.

Rich Guajardo
President
Corporate Services International, Inc.

The Factoring Solution, Example and Benefits

How it Works

Factoring is straightforward. Your company bills its customers in the usual way except that you will be asked to stamp each invoice with a "Notice of Assignment" indicating that the invoice has been assigned to Hawaii Receivables Management (HRM). This means that your customer now owes HRM the face value of the assigned invoice. You will also be asked to fax copies of the invoices to HRM. HRM then advances your business between 75% to 85% of the face amount of the invoices.

HRM holds the invoice for the length of its term and if needed, begins the collection process when it becomes due. Once HRM is paid on the invoice, we will release to your company the reserved amount of the invoice (15% ? 25%) minus the appropriate discount fee.

	Factoring Example
Day 1	Face amount of your invoice due in 30 days sold to HRM	$1,000
	HRM holds a reserve	<$200>
Day 2	HRM pays you a Cash Advanced (upon verification of invoice)	$800

Day 30	Customer's payment received by HRM	$1,000
	Original reserve amount	$200
	HRM's discount fee (3%)	<$30>
Day 37	Rebate to you	$170

HRM's discount fee is based on the quality of your accounts, not on the strength of your company. This fee fluctuates according to the creditworthiness and performance of your receivables. The fee can be as low as 2% of the invoice amount depending on the level of risk involved.

As you can see there are many benefits to Factoring. When compared to the cost of maintaining receivables for 30 days or more, and the administrative expense associated with collections, Factoring is an excellent solution to your cash flow problems.

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