We Have Answers.
What types of industries does Summit serve?
We offer invoice factoring, asset-based lending, inventory financing, and equipment lending in a broad range of industries, including:
- Manufacturing Companies
- Freight and Trucking
- Distribution and Wholesale
- Professional Services
How Does Invoice Factoring Work?
Invoice Factoring can make all the difference in your cash flow. The process is simple: we give you a line of credit using your outstanding invoices as collateral, and your loan is repaid as your clients pay those invoices. The structure is flexible; in addition to your outstanding accounts receivable, we can often consider inventory and equipment as additional collateral for the loan.
How does asset-based lending work?
At Summit we help well-managed companies handle a temporary cash crunch. Asset-based lending uses your company’s assets as collateral for a line of credit to give you working capital when you need it. The collateral is outstanding invoices, and other assets such as inventory and equipment. As customers pay their bills, your loan is repaid.
How does inventory financing work?
Inventory financing also helps companies that need a boost with cash flow. We provide a line of credit to help with operating expenses, seasonal slowdowns, or expansion. Inventory financing uses physical inventory in addition to accounts receivable as collateral for the loan. You pay back the loan, or line of credit, when the inventory is sold through the use of our Invoice Factoring programs.
Do you offer purchase order financing or financing for work in progress?
We often provide financing for work in progress, and we partner with companies who offer Purchase Order Financing .
What other services do you provide?
We provide professional accounts receivables management services. We make sure you have the best opportunity to improve cash flow with invoice factoring, asset-based lending, inventory financing, and/or equipment financing. We can also assist you with credit approval services and collection services.
What kind of company is your typical client?
We work with well-managed companies that sell to reliable customers. Most of our clients have a need for additional working capital to cover operating expenses. If you are waiting on unpaid invoices, we can increase your cash flow.
How do you establish your fees?
Our fees are based on a number of different factors:
- The size of the credit facility, or your maximum line of credit
- The track record of your business
- The financial strength of your customers
- The payment record of your customers
Will Summit approve all of my customers for financing?
When you apply for financing, we ask for a list of your customers, including names and addresses. We perform credit approvals for each of your customers and establish individual credit limits.
If my company owes back taxes, does it affect the loan?
Yes. If your company owes unpaid taxes to a federal, state, or other governmental tax authority, that obligation may supersede paying back private loans. We work with you and the taxing authority to develop a repayment plan before setting up your financing with Summit.
HOW WILL MY CUSTOMERS KNOW TO SEND THE INVOICE PAYMENT TO SUMMIT? WHERE DO THEY SEND THE PAYMENT?
When you begin your financing relationship with us, we send a letter to your customers on your company letterhead. The letter identifies Summit as your financing source, and authorizes Summit to accept payment on your behalf. Your customer will pay Summit directly, via a regional lock box.
What is the impact on my customer, and will it change our existing relationship?
We take special care to manage the payment transition smoothly. Summit understands the importance of your relationships with your customers. We handle the transactions with discretion, and there should be no change in your relationship.