Factoring

Authors DAVID B. TATGE

SHAREHOLDER EPSTEIN BECKER & GREEN, P.C. David is a member of the law firm, in its Washington, D.C. office. His practice focuses on commercial finance, bankruptcy and associated business and commercial litigation. David is a co-author of American Factoring Law (Bloomberg/ BNA, 2009), together with David Flaxman and Jeremy B. Tatge.

JEREMY B. TATGE

OWNER AND CHIEF EXECUTIVE OFFICER CAPITOL FACTORS COMPANY, LLC Jeremy is owner and chief executive officer of Capitol Factors Company, LLC, doing business as Capitol National Factors Company, a start-up commercial finance company in Oak Hill, VA. He was previously employed in the global custody group of Brown Brothers Harriman & Co. in Boston, MA. Jeremy is a co-author of American Factoring Law.

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Fundamentals of Factoring

A guide to understanding factoring transactions, including advantages of factoring over traditional bank financing and key issues to consider in structuring and negotiating factoring agreements.

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any businesses, both large and small, factor their accounts receivable (accounts). Factoring is sometimes wrongly perceived as a source of financing of last resort, favored by financially distressed companies that cannot obtain traditional bank financing. In fact, the majority of American factoring volume arises from contracts between large, old-line factors, many of which are bank owned or affiliated, and creditworthy client companies, many of which are in the apparel, textiles, furniture and footwear industries. Beyond these traditional factoring markets, factors today purchase accounts from clients in almost every industry, including electronics and other consumer goods, government contracts, medical services, construction, transportation and other service industries.

Prior to the financial...