Laxman Leafin Limited markets a "hybrid" or modified form of factoring that in many respects is significantly different from traditional factoring. We believe that factoring should be viewed as bridge capital and not as a permanent source of capital. It should ultimately facilitate the transition to a commercial bank, if desired. The Laxman Leafin Limited factoring program provides an alternative source of working capital that combines a strong emphasis on client relationships normally associated with commercial banks along with the flexibility in underwriting and funding afforded under our modified program.

Distinctions from traditional factoring

  • Emphasis on client relationship and service
  • Lower cost
  • Limited debtor notification and flexible verification programs
  • No hidden fees
  • Client managed billings and collections
  • Faster funding and return of cash reserves
  • Client access to "out-sourced" credit department at a reasonable additional cost
  • Depth of experience in the capital markets

Distinctions from typical bank revolvers

  • No covenants
  • Minimal audit fees, legal fees or other fees
  • Limited documentation
  • Client leverage reduction due to "off-balance sheet" financing
  • Flexibility for undercapitalized businesses, as well as, companies with volatile earnings, customer concentrations, or limited operating histories

Who should consider factoring

  • Rapidly growing companies or those with high growth potential
  • Transitional companies with past losses
  • Turnaround companies
  • Start-up companies with limited history
  • Companies denied adequate bank financing
  • Companies contemplating raising equity to support working capital
  • Companies currently factoring

Owner-occupied real estate and manufacturing equipment finance arrangements structured under a recapitalization situation and often in conjunction with a new working capital facility.

General Transaction Guidelines

  • Strong collateral position considered to compensate for uneven historical cash flows
  • Improving business and financial trends
  • Up to a five year amortization on commercial real estate and two years on equipment
  • Ability to refinance existing equity out of assets
  • Fixed or variable interest rates